What is Customer Churn Rate?
Also known as: logo churn, customer attrition
Customer Churn Rate is the percentage of customers who cancel or fail to renew during a given period.
What is Customer Churn Rate?
Customer (or 'logo') churn measures how well you retain relationships. High churn forces you to acquire faster just to stand still, and it caps the lifetime value of every customer you win.
How to calculate Customer Churn Rate
Worked example
You start the month with 500 customers and lose 15. Customer Churn Rate = 15 ÷ 500 = 3% monthly.
What's a good Customer Churn Rate?
SMB SaaS often sees 3–5% monthly logo churn; mid-market and enterprise target under 1% monthly (roughly 5–7% annually) or better.
Frequently asked questions
Customer churn vs revenue churn — which matters more?
Both. Customer churn counts logos; revenue churn counts dollars. Losing ten small accounts and one whale can look fine on logos but terrible on revenue.
Should I measure churn monthly or annually?
Match it to your billing cycle and report consistently. Monthly churn compounds — 3% monthly is roughly 30% annually, not 36%.