--- title: "Churn Rate: What It Means & How to Calculate It | Jirav" description: Churn rate is a metric that measures the percentage of customers who stop using your service within a given time frame. Learn how to calculate it. --- ![](https://www.jirav.com/hs-fs/hubfs/Imported%20sitepage%20images/header-logo.png?width=98&name=header-logo.png) - [ Resources ](https://www.jirav.com/resources) - Menu / Resources - [Resource Center ](https://www.jirav.com/resources) Blogs and resources on all things finance, FP&A, and Jirav [Webinars ](https://www.jirav.com/webinars) Learn more about Jirav and FP&A from industry experts [Events ](https://www.jirav.com/events) See our upcoming calendar of events [Help Center ](https://help.jirav.com/) Guide on how to use Jirav - [ Company ](https://www.jirav.com/company) - Menu / Company - [About ](https://www.jirav.com/company) Learn about Jirav’s story and meet our leadership team [News Coverage ](https://www.jirav.com/news) See the latest news and highlights [Press ](https://www.jirav.com/press-releases) Recent company announcements and updates [Careers ](https://www.jirav.com/careers) View current job openings and learn how to join the Jirav Tower ![business_env](https://www.jirav.com/hubfs/business_env.svg) [ For Businesses ](https://www.jirav.com/reporting-planning-purpose-built-for-businesses) ![accounting_calc](https://www.jirav.com/hubfs/accounting_calc.svg) [ For Accounting & CFO Firms ](https://www.jirav.com/reporting-planning-purpose-built-for-accounting-cfo-advisory-firms) [ Get a Demo ](https://www.jirav.com/request-demo) [ Sign in ](https://app.jirav.com/) ![](https://www.jirav.com/hubfs/April2021/images/banner-shap.png) BLOG # Churn Rate: What It Means & How to Calculate It | Jirav [![](https://www.jirav.com/hubfs/April2021/images/fb-icon.png) ](http://www.facebook.com/share.php?u=https://www.jirav.com/saas-metrics-library/churn-percentage//) [![](https://www.jirav.com/hubfs/April2021/images/tw-icon.png) ](https://twitter.com/share?url=https://www.jirav.com/saas-metrics-library/churn-percentage//) [![](https://www.jirav.com/hubfs/April2021/images/in-icon.png) ](http://www.linkedin.com/shareArticle?mini=true&url=https://www.jirav.com/saas-metrics-library/churn-percentage//&summary=&source=CeBIT) 1 minute read ![](https://www.jirav.com/hubfs/April2021/images/Resources-tile-pattern-giraffe@2x.png) ### What is Churn %? Churn rate is a metric that measures the percentage of customers who stop using your service within a given time frame. It can be calculated on a monthly, quarterly, or annual basis, and it's expressed as a percentage. It's a key metric for measuring the health of your business and its potential for growth. ### Why Churn % Is Important Churn rate is a critical metric for SaaS companies, because it directly impacts your revenue and growth potential. High churn rates mean that your customer acquisition efforts are not effective, and you're losing customers faster than you can acquire new ones. This can be especially damaging for companies with a subscription-based model, where recurring revenue is a key source of income. On the other hand, low churn rates indicate that your customers are satisfied with your service and are likely to continue using it long term. This not only increases revenue but also helps to build a positive brand reputation and increase customer loyalty. ### How to Calculate Churn % Churn % can be calculated in a variety of ways, but the most common method is to divide the number of customers lost during a given time period by the total number of customers at the beginning of that period. The formula for calculating churn rate is as follows: Churn % = (Customers Lost During Time Period / Total Customers at Beginning of Time Period) x 100 For example, if you had 1,000 customers at the beginning of the month and lost 100 customers during the month, your churn rate for that month would be: Churn % = (100 / 1,000) x 100 = 10% In this scenario, you would have a monthly churn rate of 10%. ##### Jirav Published April 25, 2023 ###### Related topics - [Metrics library](https://www.jirav.com/saas-metrics-library/tag/metrics-library) - [Saas metrics library](https://www.jirav.com/saas-metrics-library/tag/saas-metrics-library) ## Related blog posts ![](https://www.jirav.com/hubfs/April2021/images/Resources-tile-pattern-giraffe@2x.png) Metrics library #### CAC Payback: How to Calculate & Why It's Important | Jirav [ Read more ](https://www.jirav.com/saas-metrics-library/cac-payback-customer-acquisition-costs) ![](https://www.jirav.com/hubfs/April2021/images/Resources-tile-pattern-giraffe@2x.png) Metrics library #### SaaS Magic Number: Guide to Calculating & More | Jirav [ Read more ](https://www.jirav.com/saas-metrics-library/saas-magic-number) ![](https://www.jirav.com/hubfs/April2021/images/Resources-tile-pattern-giraffe@2x.png) Metrics library #### Net Revenue Retention: What it Is & How To Calculate | Jirav [ Read more ](https://www.jirav.com/saas-metrics-library/net-revenue-retention/) ![](https://www.jirav.com/hubfs/April2021/images/Resources-tile-pattern-giraffe@2x.png) Metrics library #### SaaS Quick Ratio: What It Is & Why It Matters | Jirav [ Read more ](https://www.jirav.com/saas-metrics-library/saas-quick-ratio) ![](https://www.jirav.com/hubfs/April2021/images/Resources-tile-pattern-giraffe@2x.png) Metrics library #### What is Monthly Recurring Revenue (MRR) | Jirav [ Read more ](https://www.jirav.com/saas-metrics-library/monthly-recurring-revenue) ![](https://www.jirav.com/hubfs/April2021/images/Resources-tile-pattern-giraffe@2x.png) Metrics library #### The Rule of 40: Definition + SaaS Calculator | Jirav [ Read more ](https://www.jirav.com/saas-metrics-library/rule-of-forty) ![](https://www.jirav.com/hubfs/April2021/images/Resources-tile-pattern-giraffe@2x.png) Metrics library #### Gross Revenue Retention: Meaning & How to Calculate | Jirav [ Read more ](https://www.jirav.com/saas-metrics-library/gross-revenue-retention/) ![](https://www.jirav.com/hubfs/April2021/images/Resources-tile-pattern-giraffe@2x.png) Metrics library #### Annual Recurring Revenue: What is ARR | Jirav [ Read more ](https://www.jirav.com/saas-metrics-library/annual-recurring-revenue) ![](https://www.jirav.com/hubfs/April2021/images/Resources-tile-pattern-giraffe@2x.png) Metrics library #### What is Downgrade MRR Rate & How to Calculate It | Jirav [ Read more ](https://www.jirav.com/saas-metrics-library/downgrade-percentage) [Load more](##) ## Let’s get started! [ Request a demo ](https://www.jirav.com/request-demo) ![](https://ws.zoominfo.com/pixel/GayWM7nWYSEC9X3nq2tn) ```json { "@context" : "https://schema.org", "@type" : "BlogPosting", "author" : { "@type" : "Person", "name" : "Jirav", "url" : "https://www.jirav.com/saas-metrics-library/author/jirav" }, "dateModified" : "2023-04-26T07:30:07.908Z", "datePublished" : "2023-04-25T14:51:04.000Z", "headline" : "Churn Rate: What It Means & How to Calculate It | Jirav", "mainEntityOfPage" : { "@id" : "https://www.jirav.com/saas-metrics-library/churn-percentage/", "@type" : "WebPage" }, "publisher" : { "@type" : "Organization", "logo" : { "@type" : "ImageObject", "url" : "https://www.jirav.com/hubfs/Jirav%20Logo%20-%20176x75%20(small%20logo).png" }, "name" : "Jirav" } } ``` ```json { "@context" : "http://www.schema.org", "@type" : "AccountingService", "address" : { "@type" : "PostalAddress", "addressCountry" : "United States", "addressLocality" : "San Francisco", "addressRegion" : "CA", "postalCode" : "94102", "streetAddress" : "25 Taylor Street" }, "description" : "Jirav is a business planning software powering financial planning and analysis in the cloud with all-in-one forecasts, budgets, reports, and dashboards", "geo" : { "@type" : "GeoCoordinates", "latitude" : "37.782585", "longitude" : "-122.411255" }, "image" : "https://www.jirav.com/hs-fs/hubfs/Jirav_SitePageAssets_Feb2018/Jirav%20Logo%20for%20top%20nav.png?width=1200&height=510&name=Jirav%20Logo%20for%20top%20nav.png", "logo" : "https://www.jirav.com/hs-fs/hubfs/Jirav_SitePageAssets_Feb2018/Jirav%20Logo%20for%20top%20nav.png?width=1200&height=510&name=Jirav%20Logo%20for%20top%20nav.png", "name" : "Jirav", "openingHours" : "Mo, Tu, We, Th, Fr 09:00-17:00", "priceRange" : "$100/month-$750/month", "sameAs" : [ "https://www.instagram.com/gojirav/", "https://www.linkedin.com/company/jirav/", "https://twitter.com/GoJirav", "https://www.facebook.com/GoJirav/" ], "url" : "https://www.jirav.com/" } ```