Calculate Monthly Membership Churn Rate

Excel Formulas › Fitness & Gym

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Churn is the share of members who cancel in a period. For a gym, a small monthly churn compounds fast — so it is worth watching every month.


Quick formula: Divide members lost by members at the start of the month:
=Cancelled/StartingMembers

Retention is simply 1 minus churn.

Functions used (tap for the full reference guide):

The example

A gym started the month with 800 members and 36 cancelled.

AB
1ItemValue
2Members at start800
3Cancelled36
4Churn rate4.5%

The formula

Churn rate is members lost divided by the members you started the period with:

=B3/B2 // cancellations ÷ starting members, as a percent

How it works

Reading and using it:

  1. Use the member count at the start of the month as the denominator (800).
  2. Count cancellations during the month (36), regardless of new joins.
  3. Divide: 36 ÷ 800 = 0.045, or 4.5% monthly churn.
  4. Retention is 1 − churn = 95.5%. Track the trend; small monthly differences compound over a year.

Annualised, 4.5% monthly churn means roughly 42% of members lost over a year if the rate holds — which is why even one point matters.

Try it: interactive demo

Interactive

Enter starting members and cancellations; churn and retention update.

Variations

Retention rate

The complement of churn.

=1-B3/B2

Net member change

Factor in new joins to see real growth.

=(NewJoins-B3)/B2

Pitfalls & errors

Use the starting member count, not the ending count, as the denominator — mixing them inflates or deflates churn.

Separate voluntary cancellations from failed payments; the fixes are completely different.

Practice workbook

📊
Download the free Calculate Monthly Membership Churn Rate practice workbook
Edit the yellow start and cancelled counts; churn and retention recalculate.

Frequently asked questions

Should new members count in churn?
No. Churn measures losses against the starting base. Track new joins separately to get net growth.
What is a healthy gym churn rate?
Monthly churn around 3–5% is common for gyms; consistently above that erodes the member base quickly.
How do I annualise monthly churn?
Roughly 1 minus (1 minus monthly churn) raised to the 12th power — it is higher than simply multiplying by 12 because the base shrinks.

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Function references: SUMROUND