This video shows how to calculate churn rate.

Churn rate is the percentage of customers who stop being a customer during a given period of time. For example, if 7% of an online movie rental service's subscribers cancel their membership each month, the monthly churn rate is 7%.

Companies closely monitor the churn rate; if it increases, it indicates increasing customer dissatisfaction.

Churn rate can be used to calculate the average length of time a customer stays a customer. This is done by inverting the churn rate. For example, if a company has a monthly churn rate of 5%, this means that the average customer stays a customer for 20 months (because 1/0.05 is 20).
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