Churn Rate Calculator

Monthly churn = customers lost / start customers. Annualized: 1 − (1−monthly)^12.

Inputs

Result

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How to use this calculator

  • Enter start customers + lost + new.

About this calculator

Churn rate measures customer loss. Two definitions: customer churn (% of customers gone) vs. revenue churn (% of revenue gone — different if losing big or small accounts). Best-in-class SaaS: <1%/mo (12% annualized). Healthy: 1-3%. Above 5%/mo: customer fit problem. Negative net churn (NRR > 100%) means existing customer expansion outpaces losses — holy grail of SaaS. Source: Gainsight Customer Success benchmarks.

Frequently asked

Customer vs. revenue churn?+
Customer churn: counts users. Revenue churn: counts $. Lose your biggest enterprise: 1% customer / 30% revenue churn.
Why annualize?+
Compare to industry benchmarks (usually annual). 3% monthly churn ≈ 31% annualized — sounds different.
Net Revenue Retention?+
Includes expansion revenue. NRR = (start MRR + expansion − contraction − churn) / start MRR. >100% = magic.
Reducing churn?+
Onboarding, customer success, product-market fit, switching costs. Cheaper than acquisition by 5×.
Acceptable for what business?+
Enterprise SaaS: <1%/mo expected. SMB SaaS: 3-7% common. Consumer apps: 5-15%/mo normal.

Related calculators

Customer Lifetime Value (LTV)
LTV = ARPU × gross margin × lifetime. Foundational SaaS unit economics.
CAC Payback Period
Months = CAC / (ARPU × gross margin). Time to recover acquisition cost.
Gross Margin
Gross margin % = (Revenue − COGS) / Revenue. Profit before operating expenses.
Contribution Margin
CM = Revenue − Variable Costs. CM ratio = CM / Revenue.
MRR / ARR Growth Projection
MRR with monthly growth + churn → 12-month projection. ARR = MRR × 12.
CAC vs LTV Ratio
LTV / CAC ratio. Healthy SaaS: 3:1+; under 1:1 burns money.

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