Churn Rate Calculator

How to Use This Calculator

Calculate your churn rate in 3 simple steps:

1. Enter Starting Customers: Total customers at beginning of period
2. Enter Lost Customers: Customers who churned during the period
3. View Results: See monthly churn, annual churn, retention rate, and customer lifespan

Churn Rate Formulas

Real-World Example

Real Numbers: Starting Customers: 1,000, Lost: 50, Monthly Churn: 5%

Result: Annual Churn=46%, Retention=54%, Avg Lifespan=20 months

Why Churn Rate Matters

Churn rate is the most critical metric for subscription businesses because it:

• Indicates product-market fit and customer satisfaction
• Directly impacts revenue growth and profitability
• Helps forecast future MRR and business health
• Guides customer success and retention strategies

Frequently Asked Questions

What is a good churn rate?

For SMB SaaS: 3-5% monthly is typical. For enterprise: 1-2% monthly. Anything above 5% indicates serious issues. Annual churn should ideally be below 20%.

How is annual churn calculated?

Annual churn = 1 - (1 - Monthly Churn)^12. This compounds monthly churn over 12 months. A 5% monthly churn equals 46% annual churn!

What's the difference between churn and retention?

Churn rate = % of customers lost. Retention rate = % of customers kept. They're inverses: Retention = 100% - Churn.

How can I reduce churn?

Focus on: (1) Better onboarding, (2) Proactive customer success, (3) Regular value delivery, (4) Win-back campaigns, (5) Product improvements based on feedback.

Is this calculator free?

Yes! This Churn Rate Calculator is completely free to use as many times as you need.