How churn rate is calculated
Members who left = members at the start + new members − members at the end. Churn rate = members who left ÷ members at the start. Retention rate is the other side of the same number: 100% minus the churn rate, or (members at the end − new members) ÷ members at the start.
A worked example: you start the month with 400 members, 30 join, and you end with 410. That means 20 left, so the churn rate is 20 ÷ 400 = 5% and the retention rate 95%.
Members who joined and left within the same period count as members who left. They are easy to miss, and they say a lot about how well new members are welcomed.
Monthly, yearly, and why you can’t just multiply
Churn compounds: each month’s rate applies to the members who are still there. Losing 5% a month is about 46% over a year, not 60%. To compare a quarter with a month, the calculator converts any period into its monthly equivalent, then back into a yearly figure.
Pick one period and stick with it. A single month swings with holidays and January sign-ups; a rolling three or twelve months shows the trend.
Who counts as a member who left
Someone whose membership ended: they cancelled, or their contract or card ran out without a new one. Someone who hasn’t visited for weeks but still pays has not churned yet. They are the member you can still keep, and mixing the two hides them.
- Count frozen or paused memberships separately rather than as churn, and be consistent about it.
- For punch cards or class packs, decide when a member counts as gone (for example, a pack that ran out with no new one within a month) and keep that rule.
- Use the same source for every count, such as your booking system’s member list, so the numbers add up.
Average membership length and revenue
At a steady monthly churn rate, the average membership lasts 1 ÷ monthly churn months: 20 months at 5% a month. Multiply by your average monthly fee for the revenue a typical member brings in over that time.
Treat both as rough. Churn is rarely steady: new members who haven’t built a routine yet tend to leave sooner than members who have trained with you for years. The figure is most useful for seeing what a change in churn is worth, for example how much longer the average member stays if monthly churn drops by one point.
From measuring churn to preventing it
A churn rate tells you how many members you lost after they left. PushBeyond’s retention dashboard flags members at risk every night, before they cancel, and gives your team a short list of members to contact each morning. It connects to Virtuagym, Trainin and GoHighLevel.