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What is Churn?

“Churn” is the number of customers who cancel your service or don’t prolong it, while the churn rate simply stands for the percentage. It is very important to calculate this metric, as the question of your churn rate is very common when talking to investors.

How can I calculate my Churn Rate?

You have to take the number of churned customers and compare them to the total number of customers over the same time period:

  • churned customers /total number of customers
    You can calculate on a daily, monthly, or yearly basis: the latest being the most common one.

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