ChartMogul offers two churn rate formulas depending on your business model: B2B or B2C.
Our Standard Formula generally works best for B2B subscription businesses. This is because the formula calculates how a given metric (e.g., number of customers, subscriptions, or MRR) has increased (or decreased) between the start and end of a period.
For B2C subscription businesses, we recommend the Shopify Formula. This formula calculates how a given metric (e.g., number of customers, subscriptions, MRR) has increased (or decreased) between the start and end of a period by calculating and summing together the increase (or decrease) for each day in the period.
The Shopify Formula is better suited for businesses that add a high volume of new customers each month — usually with little expansion or contraction MRR — and mainly offer monthly subscriptions customers can cancel at any time.
Learn about each of ChartMogul’s churn rate charts, including how your churn rate formula affects the calculation of each rate:
Resources and further reading:
- The Last SaaS Churn Guide You’ll Ever Need to Read
- The Ultimate (SaaS) Churn Rate Cheat Sheet
- What is Churn? How Can It Be Negative? And What’s a Good Monthly Churn Rate?
Configuring the Churn Rate Formula
Access your Churn Rate Formula setting by clicking Data Platform > Data Settings > Subscription Analytics. From there, select the formula that best suits your needs.
Learn more about Data Settings in ChartMogul.