# What is subscription churn rate, and how do you calculate it?

> Source: https://zubs.app/glossary/subscription-churn-rate
> Title: Subscription Churn Rate: Formula and Example — Zubs
> Author: Alexander Kohout (https://zubs.app/authors/alexander-kohout)
> Published: 2026-10-02
> Updated: 2026-10-07
> Language: en

## Short answer

Subscription churn rate is the share of the subscriptions active at the start of a period that are cancelled during it. Churn rate = cancellations in the period ÷ active subscriptions at the start of the period × 100, so 40 cancellations from 800 active subscriptions is 5%.

## How do you calculate churn rate?

**Churn rate = cancellations in the period ÷ active subscriptions at the start of the period × 100**

**Example (made-up numbers):** on May 1 a shop has 800 active subscriptions, and 40 of them are cancelled during May. Churn rate = 40 ÷ 800 × 100 = **5%**. June starts with 850 active subscriptions, and 34 of them are cancelled: 34 ÷ 850 × 100 = **4%**. Churn went down by one percentage point.

Two details matter when you compare numbers:

- **Use the same period every time.** A monthly churn rate and a yearly one aren't comparable.
- **Count only the subscriptions you started the period with.** A subscription started and cancelled in the same month is in neither number, so the rate follows one fixed group. Track those quick cancellations separately; they point to a problem at checkout or the first renewal.

## Why does churn rate matter?

Churn decides how much of your growth you keep. A shop that wins 50 new subscribers a month and loses 40 grows by 10. Cutting churn by a few subscribers a month has the same effect as finding new ones, without the acquisition cost. Churn rate also shows whether a change, such as a cancellation flow, a better first box or a dunning setup, actually works.

Before you look for a fix, split cancellations by how long subscribers stayed. Early cancellations usually point to the offer, the checkout or the first order. Cancellations after several months point to the product, the delivery interval or the price.

## How does Zubs show churn rate?

The [Zubs analytics dashboard](https://zubs.app/features/subscription-analytics) shows the churn rate for each month with exactly this definition, next to new subscriptions, cancellations and the change from the previous month. Quick cancellations, on the day of signup or before the first renewal, have numbers of their own there. To bring the rate down, start with the [cancellation offers playbook](https://zubs.app/playbooks/cancellation-offers).

## Bottom line

Churn rate = cancellations ÷ active subscriptions at the start of the period. Track it monthly, always with the same definition, and read it together with the cancellation details that explain it.

## Frequently asked questions

### What's the difference between churn rate and retention rate?

For a fixed group they're two sides of the same number. If 5% of the subscriptions active at the start are cancelled, 95% of them are retained.

### Does churn rate include failed payments?

Only when a failed payment ends the subscription. If your dunning ends with a skip or a pause, the subscription stays and isn't churn.

### Is a paused subscription churned?

No. A paused subscription isn't cancelled, so it doesn't count as churn, even though it doesn't bill while paused.

### Should I measure churn by subscriptions or by customers?

Either works; just don't mix them. The Zubs dashboard counts subscriptions.

## Related

- [Feature: subscription analytics in Zubs](https://zubs.app/features/subscription-analytics)
- [Calculator: what churn costs you in MRR](https://zubs.app/tools/churn-calculator)
- [Playbook: stop cancellations with an offer that fits the reason](https://zubs.app/playbooks/cancellation-offers)
- [Playbook: reduce early subscription churn](https://zubs.app/playbooks/reduce-early-subscription-churn)
- [Glossary: involuntary churn](https://zubs.app/glossary/involuntary-churn)
- [Glossary: MRR](https://zubs.app/glossary/mrr)