Churn Rate Calculator
Calculate customer and revenue churn rates
Results are estimates and may not reflect your actual financial situation. This is not financial, tax, or legal advice. Consult a qualified professional.
How to use
Choose Customer Churn to calculate churn from customer counts, or Revenue Churn to analyze MRR-based churn including expansion. Enter your starting numbers and losses for the period. The calculator shows churn rate, retention rate, and estimated customer lifespan.
Formula
Examples
SaaS customer churn
Started the month with 1,000 customers and lost 50. That is a 5% monthly churn rate with 95% retention. Average customer lifespan is 20 months. If you reduce churn to 3%, lifespan jumps to 33 months.
Revenue churn with expansion
Starting MRR of $100,000. Lost $3,000 to cancellations, $1,000 to downgrades, but gained $5,000 in expansion. Gross revenue churn is 4%, but net revenue churn is -1% (net negative churn), giving 101% NRR.
High-churn mobile app
Started with 50,000 users and lost 10,000 in one month. That is a 20% monthly churn rate with only 5-month average lifespan. This indicates serious onboarding or product-market fit issues.
Frequently asked questions
What is a good churn rate?
For B2B SaaS, 3-5% monthly customer churn is common in early stage, while mature companies target under 2%. For B2C subscriptions, 5-7% monthly is typical. Annual churn benchmarks: under 10% is excellent for B2B SaaS, under 20% is acceptable for most subscription businesses.
What is the difference between customer churn and revenue churn?
Customer churn counts lost accounts regardless of size. Revenue churn measures the MRR impact. You could lose many small accounts (high customer churn) but little revenue, or lose one enterprise account (low customer churn) but significant revenue. Track both for a complete picture.
What is net negative churn?
Net negative churn means expansion revenue from existing customers exceeds revenue lost from cancellations and downgrades. This results in NRR above 100%. Top SaaS companies achieve 120-130% NRR, meaning their existing customer base grows even without new sales.
How do I calculate annual churn from monthly churn?
Annual churn is not simply monthly churn times 12. Use the compound formula: Annual Churn = 1 - (1 - Monthly Churn Rate)^12. For example, 5% monthly churn compounds to about 46% annual churn, not 60%.
How can I reduce churn?
Focus on onboarding (most churn happens in the first 90 days), monitor usage data for at-risk signals, build a customer success function, improve product based on cancellation feedback, offer pause or downgrade options instead of cancellation, and ensure pricing aligns with the value customers receive.
About this tool
Calculate customer churn rate and revenue churn rate. See retention rate, average customer lifespan, and net revenue retention with expansion MRR.
All calculations are performed locally in your browser. Your data never leaves your device.