# Churn Rate Calculator

Find Your Customer Attrition, Increase Revenue

### Churn Rate Calculator

\$
• 1

#### Determine total customers

The first number you'll need is the total number of customers that you had in a specific month.

• 2

#### Determine the customers you lost last month

Now, determine how many customers you've lost in that same month.

• 3

#### Determine the average worth of your customers' accounts

Determine the average worth of all of your customers' accounts for that month. Then, reap the benefits of your churn rate percentage and your lost revenue due to churn!

Your churn rate, sometimes known as â€śchurn,â€ť or â€ścustomer attrition,â€ť is the number of customers who stopped working with your company in a given period of time, and itâ€™s expressed as a percent.

#### Churn rate formula: How to calculate monthly churn rate

The equation for churn rate is simple.

Churn rate = (Customers you lost over a month) / (Customers you had at the beginning of the month)

When you multiply your results by 100, youâ€™ll see the figure expressed in a percentage, which is your churn rate.

#### Benefits of using a churn rate calculator

The benefits of using a churn rate calculator are seemingly endless. Here are a few of the best:

YOU DONâ€™T HAVE TO WORRY ABOUT MISCALCULATIONS
If math isnâ€™t your strong suit, or youâ€™d rather not worry about doing multiple calculations with a calculator, using a churn rate calculator can clear up your issues.

Our churn rate calculator gives you results in seconds â€” and all we require from you are two numbers â€” the customers you lost over a month and the number of customers you had at the beginning of the month.

THE RESULTS PROVIDE A BUSINESS CHECKUP
Your churn rate can be extremely eye-opening when you calculate it for the first time. Typically, youâ€™ll want to keep your churn rate around 2%.

If your churn rate is higher than you expected, it can encourage you to make better business decisions in order to retain clients.

WHEN YOU IMPROVE CHURN RATE, YOU IMPROVE REVENUE
When you use a churn rate calculator and realize that you need to make business improvements, you can see a dramatic increase in your revenue year over year.

#### Why is churn rate important?

Your churn rate tells you a lot of things about your company, and when you use a churn rate calculator, you can gain insight into your changing customer base.

If your churn rate is high, it means that you have a high percentage of clients dropping your company every month in relation to the number of clients you attracted. If your churn rate is low, it means that youâ€™re keeping a high percentage of the clients that you attracted within that monthly period.

Either way, your churn rate is an important metric that you can use to determine the health of your business.

If you ignore a high churn rate, youâ€™ll likely lose more money than youâ€™re making, and over time, your revenue will collapse. A high churn rate also sounds the alarm that you need to improve something within your business â€” whether it be the quality of your products or services, customer satisfaction, or quality of targeting.

Picture this, itâ€™s a hot sunny day, and youâ€™re trying to fill a watering can to water your garden, but there are holes in the bottom.

Just as quickly as you are filling the watering can, water is also leaking out.

Over a few minutes, if youâ€™re losing more water than you are adding, youâ€™ll end up with a watering can thatâ€™s never full.

You can use the same idea to illustrate churn rate. The water going into your watering can is new customers, and the water seeping out the bottom are those who churn.

If you have a lot of water, or customers, coming in, youâ€™ll likely be able to keep your vessel full. However, if you donâ€™t have a lot of customers coming in, those who are churning will cause a customer deficit.

Over time, youâ€™ll see a decrease in your customer base, which means a decrease in revenue.

Itâ€™s important to pay attention to your churn rate so that you can keep track of holes in your strategy to keep loyal customers from dropping your product or service.

If you donâ€™t you could find your business in serious financial trouble.

The hardest part about churn rate is that it can sneak up on your business. If you donâ€™t consistently monitor your customer attrition with a churn rate calculator, you wonâ€™t have any insight into what direction your company is headed.

If you find a high churn rate, itâ€™s time to make changes immediately before your loss of customers changes your company forever.

#### What affects your customer attrition?

There are a few things that can affect your customer attrition or churn rate.

Below, weâ€™ll talk about the most important areas, along with providing you with some tips to fix them.

#### Targeting

If you fail to target users who need your products or services long term, you could see a high churn rate. Targeting users who will keep coming back for your products or services is the best way to go when you want to decrease churn rate.

The fix: Target users who can use a wide variety of your products instead of just one, or if you only offer one product or service, make sure that you target users who can use your product long-term.

#### Marketing

Marketing is an expansive term that includes a wide variety of strategies. However, at a high level, your marketing strategy can affect your churn rate. Remember how we just mentioned the importance of targeting? The marketing strategies you choose can allow you to target more effectively.

The fix: Use marketing strategies like local SEO or pay-per-click advertising (PPC) that allows you to hyper-target your audience to help you decrease your churn rate. Not only that, but you could also use marketing strategies like remarketing ads to ensure that your audience keeps coming back for more.

#### Satisfaction

Plain and simple, if your audience doesnâ€™t like your products or services, or even your customer service, they wonâ€™t continue to buy from you. Customer satisfaction is key to churn rate.

The fix: Provide out-of-this-world customer service, be thoughtful, and create products and services that are good for your customers â€” not your wallet. Also, be sure to put in the time and effort upfront to create products that are worth coming back for and create high client satisfaction.

#### Product or service quality

The quality of your product or service can greatly affect your churn rate calculator results. Although it might sound harsh, if you donâ€™t create a quality product or provide quality services for your audience, their dissatisfaction could lead to a high churn rate.

The fix: Even if it costs a little more for your company to produce higher-quality products, spend the money upfront to decrease your churn rate over the life of your business. It will also pay off to put the extra time into creating quality service benchmarks to ensure that you always provide your customers with the very best in terms of service.