Enter the total number of customers lost in the period and the total number of customers at the beginning of the period to determine the churn rate.

## Churn Rate Formula

The following formula is used to calculate a churn rate.

CR = #CL / #TC *100

- Where CR is the churn rate (%)
- #CL is the number of customers lost during the period
- #TC is the total number of customers at the start of the period

## Churn Rate Definition

A churn rate is defined as the rate at which customers are lost during a time period.

## Churn Rate Example

How to calculate churn rate?

**First, determine the total number of users at the beginning or the period.**For this example we will say that our company had 200 total customers.

**Next, determine the number of lost customers through the period.**After a period of 1 month, 20 customers are lost.

**Finally, calculate the churn rate.**Using the formula we find the churn rate to be 20 / 200 * 100 = 20%.

## FAQ

**What is churn rate?**

Churn rate is a measure of the rate at which a business or company loses customers to competitors or other factors. A higher churn rate means the business is losing customers at a faster rate.

**What is a good churn rate?**

A good churn rate is dependent on the industry because some business lend themselves to higher customer turnover then others, but the lower the better in all cases.

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