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Glossary > Churn Rate

Churn Rate

Churn rate, also known as attrition rate, is the percentage of customers who discontinue their relationship with a company over a given period of time. Subscribers who cancel or do not renew a subscription can also be considered when calculating churn rate. A low churn rate corresponds with the retention of more customers.

Churn Rate = (Number of cancellations in a period / Total number of subscriptions in that period) X 100

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Similar Terms:

Annual Recurring Revenue (ARR)
Average Revenue Per User (ARPU)
Customer Retention
Monthly Recurring Revenue (MRR)
Recurring Billing
Subscription Billing
Usage-Based Billing (UBB)

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