Monthly Churn Benchmark
Industry benchmark for monthly subscription churn rates.
Industry benchmark for monthly subscription churn rates.
Calculate it: LTV & LTV:CAC Calculator
Why It Matters
Monthly churn compounds dramatically. 5% monthly churn means only 54% of subscribers remain after 12 months. Reducing churn has massive LTV impact.
Benchmarks
A good Monthly Churn Benchmark is 5%. Top performers achieve 2-3%.
Good Performance
5%
Top Performers
2-3%
Practical Example
Scenario
A meal kit subscription evaluates their churn rate.
Calculation
Current: 7% monthly churn. At 1,000 subscribers, losing 70/month. At 4% target: lose 40/monthResult
Reducing from 7% to 4% would retain 360 more subscribers annually = $108K additional revenue at $25/month
Pro Tips
- 1Segment churn by cohort—month 1-2 churn is often 2-3x higher than month 6+ churn
- 2Calculate voluntary (canceled) vs. involuntary (payment failure) churn separately
- 3Offer pause option instead of cancel—many churned subscribers would have stayed with a break
Common Mistakes to Avoid
Frequently asked questions
Put it to work
Related Terms
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7.7x blended return at scale — seven figures attributed, across five straight quarters · Modern Prairie · Apr 2025–Jun 2026 Read the Modern Prairie case study
