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.
Retention is simply 1 minus churn.
The example
A gym started the month with 800 members and 36 cancelled.
| A | B | |
|---|---|---|
| 1 | Item | Value |
| 2 | Members at start | 800 |
| 3 | Cancelled | 36 |
| 4 | Churn rate | 4.5% |
The formula
Churn rate is members lost divided by the members you started the period with:
How it works
Reading and using it:
- Use the member count at the start of the month as the denominator (800).
- Count cancellations during the month (36), regardless of new joins.
- Divide: 36 ÷ 800 = 0.045, or 4.5% monthly churn.
- 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
Enter starting members and cancellations; churn and retention update.
Variations
Retention rate
The complement of churn.
Net member change
Factor in new joins to see real growth.
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
Frequently asked questions
Should new members count in churn?
What is a healthy gym churn rate?
How do I annualise monthly churn?
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