SaaS KPI Formula

Churn Rate Formula

Churn rate measures the percentage of customers lost during a period.

Affiliate resources

Ideas for You

Useful learning resources related to this page. As an Amazon Associate, this site may earn from qualifying purchases at no extra cost to you.

Simple formula

Lost Customers / Customers at Start of Period

The formula uses these inputs:

  • Lost Customers: enter your value in the calculator or spreadsheet.
  • Customers at Start: enter your value in the calculator or spreadsheet.

Excel formula

Use this Excel formula as a starting point. Replace the sample cell references with the cells in your worksheet.

=IFERROR(B2/C2,0)

Google Sheets formula

In most cases, the Google Sheets version uses the same structure as Excel.

=IFERROR(B2/C2,0)

Power BI DAX measure

Use this DAX pattern as a starting point and rename measures or columns to match your Power BI model.

Churn Rate =
DIVIDE(
    [Lost Customers],
    [Customers at Start]
)

SQL example

This generic SQL pattern can be adapted to your warehouse table names and column names.

SELECT
    /* replace with your formula */ AS churn_rate
FROM kpi_data;

Churn Rate calculator

Result

How to interpret Churn Rate

Use this KPI with trend data, targets, and related metrics. A single value is less useful than a consistent definition tracked over time.

Important: KPI definitions can vary by company, accounting policy, analytics platform, or reporting standard. Keep the definition consistent when comparing periods.

Common mistakes

  • Using ending customers instead of starting customers.
  • Including new customers in the denominator.
  • Mixing customer churn and revenue churn.

Related KPI formulas

Frequently asked questions

What is the Churn Rate formula?

The common Churn Rate formula is: Lost Customers / Customers at Start of Period.

How do you calculate Churn Rate in Excel?

Use this Excel formula pattern: =IFERROR(B2/C2,0). Replace the cell references with your own data.

Can this KPI be calculated in Power BI?

Yes. Use the DAX measure on this page as a starting point and adjust table and column names to match your model.