---
title: "What is Churn Rate? Definition & Examples | Kitbase"
description: "The percentage of users or subscribers who stop using your product within a given time period."
canonical: https://kitbase.dev/glossary/churn-rate
---

[Home](/) [Glossary](/glossary) Churn Rate

Analytics

# What is Churn Rate?

The percentage of users or subscribers who stop using your product within a given time period.

Churn rate is the inverse of retention — it measures the percentage of customers who leave or stop using your product over a specific period. For subscription businesses, it directly impacts revenue and growth.

Churn can be measured as user churn (users who stop logging in), revenue churn (lost subscription revenue), or logo churn (companies that cancel). Revenue churn is often more important because losing a high-value customer has more impact than losing a free-tier user.

Reducing churn is typically more cost-effective than acquiring new users. Understanding _why_ users churn — through exit surveys, behavioral analysis, and session recordings — is the first step toward improving retention.

## Example

Your monthly churn rate is 5%, meaning you lose 5% of subscribers each month. Analysis reveals that users who don't use the reporting feature in their first week have 3x higher churn, so you focus onboarding around that feature.

## Related Terms

[

Retention Rate

The percentage of users who return to your product after their first visit within a given time period.

](/glossary/retention-rate)[

Cohort Analysis

A technique that groups users by shared characteristics or time periods to compare behavior patterns over time.

](/glossary/cohort-analysis)[

DAU/MAU Ratio

The ratio of daily active users to monthly active users, indicating how often users engage with your product.

](/glossary/dau-mau)

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