# Churn Rate

*Startups & Venture Capital — Finicade finance glossary*

Churn is the rate at which customers or revenue leave. Logo churn counts customers; revenue churn weights them by value, and the two can point in opposite directions when small accounts leave and large ones expand. Monthly churn of 5% sounds survivable and means losing nearly half your customers in a year, which is why it's the first number a subscription investor asks for.

**Formula:** `Churn rate = Customers lost in period ÷ Customers at start`

**Also known as:** customer churn, revenue churn, attrition rate

**Related terms:** [Net Revenue Retention](https://finicade.com/glossary/net-revenue-retention), [Customer Lifetime Value](https://finicade.com/glossary/customer-lifetime-value), [Cohort Analysis](https://finicade.com/glossary/cohort-analysis), [Product-Market Fit](https://finicade.com/glossary/product-market-fit), [Annual Recurring Revenue](https://finicade.com/glossary/annual-recurring-revenue)

Source: https://finicade.com/glossary/churn-rate