Churn Rate

Churn rate measures how many customers cancel their subscription (customer churn) or how much revenue is lost (revenue churn) over a specific period, usually monthly. A 5% monthly churn means you lose 5 out of every 100 customers each month. Low churn is critical for SaaS valuations -- businesses with less than 3% monthly churn are considered healthy. On Enterpricr, sellers with verified low churn rates earn higher trust scores and better listing visibility. Net revenue churn can be negative if expansion revenue from existing customers exceeds lost revenue from cancellations.