SaaS Churn 

SaaS Churn refers to the percentage of customers who cancel their subscription or stop using a SaaS product within a given period. It’s one of the most critical metrics in SaaS businesses because it directly affects recurring revenue and growth potential. 

There are two main types: 

• Customer Churn: Number or percentage of customers lost. 

• Revenue Churn: Amount or percentage of revenue lost from downgrades and cancellations. 

Formula (Customer Churn Rate): 

Churn Rate = (Number of Customers Lost During Period / Number of Customers at Start of Period) × 100    

A high churn rate can signal product-market fit issues, poor customer experience, or insufficient support, while a low churn rate reflects strong customer satisfaction and retention.