Churn Rate: Definition, Meaning & Guide for Indian Businesses

Churn rate is the percentage of customers (or revenue) you lose in a given period. Monthly churn of 5% means you lose 60%+ of your customers each year before any growth.

What is Churn Rate?

There are two churn rates that matter. Logo churn = (customers lost in the month) ÷ (customers at start of month). Revenue churn = (revenue lost) ÷ (revenue at start). Revenue churn can be NEGATIVE if your existing customers expand more than the lost customers' revenue — this is called "net negative churn" and is the holy grail of SaaS. For Indian SMB SaaS, healthy monthly logo churn is 2-4%. Above 6-7% and you have a product or onboarding problem. Track reasons for churn (price, missing feature, switched competitor, business shut down) and address the top reason each quarter.