SaaS metrics
What is Churn (Cancellation Rate)?
Churn is the rate of customers (or revenue) a business loses in a period — the opposite of retention.
Churn measures the share of customers who cancel (customer churn) or revenue that is lost (revenue churn) in a given interval. It is one of the most critical indicators for subscription businesses, because high churn erodes growth even with many new sales.
Reducing churn usually has higher ROI than acquiring new customers, since it retains predictable revenue and increases LTV. That is why it is tracked closely alongside MRR.
Formula
Churn (%) = clientes perdidos ÷ clientes no início do períodoUse it in practice
SaaS Simulator
Frequently asked questions
What is an acceptable churn?
It varies by market, but low single-digit monthly churn is desirable in B2B SaaS; the ideal is to compare it to your own history.
Are customer churn and revenue churn the same?
No. You can lose a few small customers (low revenue churn) or a few large ones (high revenue churn).