What is Churn Rate?
Definition
The percentage of customers or revenue lost during a given period. High churn signals product-market fit issues, while negative net-revenue churn (expansion outpaces losses) is the gold standard for growth-stage SaaS.
Related Terms
The normalized monthly income a company earns from active subscriptions. MRR lets operators compare revenue across months regardless of billing cycles, discounts, or mid-month sign-ups.
The total revenue a business expects from a single customer account over the full duration of the relationship. A healthy SaaS business targets an LTV-to-CAC ratio of at least 3:1.
The rate at which paying subscribers cancel their memberships over a given period. Reducing subscriber churn through consistent content quality and community building is more cost-effective than acquiring new fans.