Churn Rate

This metric shows the percentage of subscribers who discontinued their subscription in a given time period, either because they canceled their subscription or because it expired.

Churn is expressed by the formula:

(number of subscriptions expired during the period) / (number of subscriptions paid at the beginning of the period) * 100.

To expand your users base, your growth rate (number of new customers) must exceed the churn rate (number of lost customers). While it’s better to have a churn rate as low as possible, having subscriptions implies dealing with churning subscriptions so don’t panic if your churn rate is greater than 0%.

Churn allows you to identify lost subscribers in the same way that trial conversion rate allows you to identify gained subscribers. Both charts are indispensable for making long-term product forecasts.