What is churn rate?

Churn rate is basically a measurement used to calculate customer retention and is significant for recurring revenue companies. It helps companies identify how many customers they lose in a given time period.
To calculate churn rate, you divide the number of customers lost during a time period by the number of customers you had at the beginning of the time period. Every Company needs to calculate thw churn rate because it tells the rate at which the company are loosing the potential customer.