---
title: "Churn Rate"
description: "The percentage of customers who cancel or stop using your product in a given period."
category: "Product-Led Growth"
canonical: https://featureos.com/glossary/churn-rate
markdown: https://featureos.com/glossary/churn-rate.md
source: FeatureOS (https://featureos.com)
---

**Churn rate** is the percentage of customers who stop using your product in a given time period. Monthly churn = (customers lost / customers at start of month) x 100. If you started January with 200 customers and lost 10, your monthly churn is 5%.

Annual churn isn't just monthly churn times 12, it compounds. A 5% monthly churn is closer to 46% annually, not 60%.

## What "good" looks like

It depends on your market. Consumer SaaS can survive higher churn because acquisition is cheaper. Enterprise SaaS aims for sub-5% annual churn. If you're charging $500/month per seat, losing 10% of customers per year is a very different problem than at $10/month.

## Churn is a symptom, not a cause

Users who never got value from your product churn because of an onboarding problem. Power users churn when a competitor ships something better. Budget customers churn when the economy tightens. Lumping all churn together hides the actual diagnosis.

Look at churned accounts: when did they stop logging in? What features did they never use? What support tickets did they open? There's usually a pattern.

Your [customer surveys and forms](/forms-and-surveys) are one of the best tools for catching churn signals before someone cancels. Ask why. People will tell you.

---
Source: FeatureOS — https://featureos.com/glossary/churn-rate
FeatureOS: product feedback, roadmaps & changelogs — https://featureos.com