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Customer Churn Rate

Updated this week

The Customer Churn Rate is the percentage of paying subscribers who cancel their subscription during a chosen period. Tracking churn helps you:

  • Detect retention issues before they snowball

  • Quantify the impact of pricing, onboarding, or support changes

  • Forecast revenue by combining churn with growth metrics such as New Business or Expansion


1  | How Grow Slash Calculates the Customer Churn Rate

Core formula
Customer Churn Rate = ((Churned Customers − Joined & Churned Customers − Reactivated Customers) ÷ Customers at Beginning of Period) × 100

Grow Slash updates this metric for any time span—day, week, month, quarter, or year—by following four steps:

  1. Baseline – Count all active paying customers at the start of the period.

  2. Identify churn events – Count every customer who cancels during the period.

  3. Adjust for short‑cycle churn – Subtract any customers who joined and churned within the same period; these users never contributed to the opening customer base.

  4. Exclude reactivations – Subtract customers who churned earlier but reactivated during the period; they are part of the baseline and should not count as new churn.

Because these adjustments remove edge cases, the result reflects true attrition of your established customer base.


2  | Example

Suppose you analyze April:

Metric

Count

Customers at 1 April

1 200

Churned customers (April)

90

Joined & churned in April

10

Reactivated customers (April)

15

Customer Churn Rate = ((90 − 10 − 15) ÷ 1 200) × 100
= (65 ÷ 1 200) × 100 ≈ 5.42 %


3  | Key Considerations

  • Rolling metric – Select any date range; Grow Slash recalculates using the same logic, so daily, monthly, or quarterly churn are always comparable.

  • Cohort clarity – Removing “joined‑and‑churned” and “reactivated” customers prevents double‑counting and keeps the focus on established subscribers who truly left.

  • Need help? – For scenario‑specific questions or deeper churn analysis, email metrics@growslash.com and our metrics specialists will be happy to assist.

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