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Churn Rate (Revenue & Subscriptions)

Luis Schiffmann avatar
Written by Luis Schiffmann
Updated over 3 weeks ago

What Is Churn Rate?

Churn Rate measures how much business you’re losing from subscription cancellations over time. It’s one of the most critical metrics for SaaS and subscription-based businesses, giving you direct insight into customer retention and revenue stability.

GrowthOptix tracks two distinct churn rates:

  • Churn Rate % (Revenue): The percentage of recurring revenue lost due to canceled subscriptions.

  • Churn Rate % (Subscriptions): The percentage of canceled subscriptions relative to your total subscription base.


How It's Calculated

GrowthOptix uses the following formulas:

Churn Rate% (Revenue) = (Churned Revenue / Total Revenue at Start) * 100

Churn Rate% (Subscriptions) = (Churned Subscriptions / Total Subscriptions at Start) * 100

Where:

  • Churned Revenue = total revenue from subscriptions canceled during the period.

  • Churned Subscriptions = count of unique canceled subscriptions with at least one successful payment.

  • Start of Period = total revenue or subscriptions at the beginning of the selected date range.

These calculations exclude failed subscriptions or those that never generated revenue.

Screenshot of Churn Rate in Revenue metric in GrowthOptix

Why It Matters

High churn can signal:

  • Poor product-market fit

  • Pricing issues

  • Weak onboarding or customer experience

  • Lack of perceived value

On the other hand, low churn = satisfied, retained customers = reliable MRR growth.

GrowthOptix helps you monitor churn across time, broken down by revenue and volume, so you can act fast and improve retention.


Visualize Churn in GrowthOptix

In your Subscriptions dashboard, you’ll find a Churn Heatmap and trendline visualizations:

  • Track cancellations day by day.

  • See which dates had the highest churn spikes.

  • Compare churn to new and existing subscriptions.

Apply filters by product, plan, or billing interval to go even deeper.

Example: A spike in churn from weekly plans might signal poor engagement in short-cycle subscriptions, an opportunity for lifecycle marketing or pricing changes.


How to Reduce Churn

Some ideas:

  • Improve onboarding with tutorials or touchpoints.

  • Add value through plan upgrades or loyalty perks.

  • Monitor at-risk users via engagement signals.

  • Collect cancellation feedback and act on it.

GrowthOptix’s churn dashboards give you the visibility to take control before revenue slips away.


Pro Tip

Try correlating Churn Rate with metrics like:

  • Trial Conversion

  • Refunds

  • Support Tickets

  • LTV (Lifetime Value)

They often go hand in hand.


Where to Find It

  • Head to Subscriptions → Churn Overview

  • Use Churn Heatmap for daily breakdowns

  • Hover over trendlines for revenue or volume changes

  • Available for both Stripe and PayPal subscriptions

Screenshot of Churned Heatmap in GrowthOptix

Take Action

I think knowing your churn is step one. Acting on it is what keeps your business growing.

Start reducing churn today with real-time dashboards, alerts, and insights — only in GrowthOptix.

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