Churn Rate
Churn rate is the percentage of customers lost over a given period. For a fixed starting cohort: churn rate = 100% − retention rate. Example: a business starting the quarter with 200 clients and retaining 180 has 10% quarterly churn.
How to calculate it
Start with the retention-rate formula, (end − new) ÷ start × 100, and subtract from 100. The worked example: (220 − 40) ÷ 200 = 90% retained, hence 10% churned. Two rules travel with the formula: never annualize by multiplying (churn compounds, convert properly or do not convert), and always state cohort and period, because the identity breaks across overlapping cohorts and shifting windows.
Churn without contracts
Appointment businesses have no cancellation event, so churn must be defined: an eligible client passing their expected return deadline plus a grace period, with no booking. The deadline comes from service cadence, never a flat day count applied to all services. Churn is not the same as a no-show: a missed appointment is a same-day recovery trigger, while churn is confirmed absence past the window. Full diagnosis lives on our churn reduction guide.
Frequently asked questions
What is churn rate?
The percentage of customers lost over a period. For a fixed starting cohort over a fixed period, it equals 100 percent minus retention rate.
How do you calculate churn rate?
Compute retention rate first, customers at end minus new customers, divided by customers at start, and subtract from 100. Always state the cohort and period, and never annualize by simple multiplication.