Churn Rate Calculator
Enter the customers you started a period with and the customers you lost. The churn rate calculator returns your customer churn percentage and the average customer lifetime it implies. Free, no signup, and it runs in your browser.
Customer Acquisition Cost (CAC)
How much you spend, on average, to win one new customer.
Customer Lifetime Value (LTV)
The total gross profit you earn from an average customer before they churn.
LTV : CAC Ratio
The single most-watched SaaS efficiency number. 3:1 is the healthy benchmark.
MRR & ARR
Monthly and annual recurring revenue from your customer base.
Churn Rate
The percentage of customers you lose in a period — and the lifetime it implies.
Customer Retention Rate
The percentage of customers you kept, excluding new ones you added.
SaaS Valuation
A revenue-multiple estimate. Faster growth earns a higher multiple.
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How to Calculate Churn Rate
The churn rate formula divides the customers lost during a period by the customers you started that period with, expressed as a percentage.
Start a month with 500 customers, lose 15, and your monthly churn rate is 3%. Customers you win during the month are not part of this formula: they did not exist at the start, so adding them to the denominator would understate churn.
- Pick the period. Monthly is the norm for SaaS; use annual if most customers are on annual contracts.
- Count customers at the start of that period, paying accounts only.
- Count customers lost during the period: cancellations and non-renewals.
- Enter both numbers above to get churn rate and implied average lifetime.
What Is Churn Rate?
Churn rate is the percentage of customers who stop paying you over a set period. It is the core retention metric for any subscription or SaaS business, because it works against every dollar of growth: high churn means new customers mostly replace the ones leaving.
Customer Churn Rate vs Revenue Churn Rate
Customer churn (logo churn) counts accounts lost, and it is what this customer churn rate calculator measures. Revenue churn counts recurring revenue lost:
The two can diverge sharply. Losing ten small accounts barely moves revenue churn, while losing one large account can dominate it. Track both, and pull your starting MRR from the MRR calculator.
Monthly vs Annual Churn Rate
Monthly and annual churn rates are not interchangeable, because churn compounds on a shrinking base. To annualize a monthly churn rate:
| Monthly churn rate | Annual churn rate | Average lifetime |
|---|---|---|
| 1% | about 11.4% | 100 months |
| 2% | about 21.5% | 50 months |
| 3% | about 30.6% | about 33 months |
| 5% | about 46% | 20 months |
| 7% | about 58% | about 14 months |
Always label a churn figure as monthly or annual before comparing it with anyone else's number.
What Is a Good SaaS Churn Rate?
A good churn rate depends on who you sell to. Enterprise SaaS on annual contracts should churn far less than a low-priced self-serve tool, where customers can cancel with one click. The calculator labels results under about 3% monthly as healthy for SMB SaaS and flags rates above about 7% monthly as growth-capping. Treat those as rough guides and compare yourself with businesses in the same segment and price range.
Churn Rate vs Retention Rate
Retention rate mirrors churn: retention rate = 100% − churn rate for the same cohort and period. A 3% monthly churn rate is a 97% monthly retention rate. Churn counts who you lost, retention counts who you kept.
How to Reduce Churn
- Onboarding and activation. Get new customers to their first real result quickly; early cancellations usually trace back here.
- Annual plans. They replace twelve monthly cancel decisions with one renewal decision.
- Proactive save flows. Reach at-risk accounts before renewal, not after they leave.
- Fix the reason, not the symptom. Exit surveys show whether price, product gaps or onboarding drive cancellations.
Lower churn lengthens customer lifetime, which raises lifetime value and lets acquisition spending drive real net growth.
Built and tested by Alston Antony. 500+ SaaS tools reviewed, 15,000-member founder community. Napkin math for founders, free and private.
Frequently Asked Questions
How do you calculate churn rate?
Divide the customers lost during a period by the customers you had at the start of that period, then multiply by 100. Start the month with 500 customers, lose 15, and churn is 15 ÷ 500 = 3%. Keep the period consistent, monthly or annual, so the number stays comparable.
How do you calculate annual churn rate from monthly churn?
Use annual churn = 1 − (1 − monthly churn)^12. Churn compounds on a shrinking base, so 3% monthly is about 30.6% a year, not 36%, and 2% monthly is about 21.5% a year.
What is a good churn rate for SaaS?
It depends on the segment. Self-serve and SMB SaaS products commonly see a few percent monthly customer churn, while enterprise SaaS with annual contracts runs much lower. Compare yourself with companies selling to the same kind of customer at a similar price point.
Is 5% monthly churn bad?
For most SaaS businesses it is high. 5% monthly implies an average customer lifetime of 20 months and compounds to roughly 46% a year. It can be tolerable very early while you search for product market fit, but it should be the first problem to fix before spending more on acquisition.
What is the difference between customer churn and revenue churn?
Customer churn, also called logo churn, counts accounts lost. Revenue churn counts recurring revenue lost, which can differ sharply when large accounts leave or downgrade. Revenue churn can go negative when expansion from remaining customers outweighs what was lost. This calculator measures customer churn.
How is churn rate related to retention rate?
Retention rate = 100% minus churn rate for the same period, when no new customers are counted. A 3% monthly churn rate is a 97% monthly retention rate. They describe the same reality from opposite ends.
How does churn affect customer lifetime?
Average customer lifetime = 1 ÷ churn rate. At 5% monthly churn the average customer stays 20 months; at 2% they stay 50 months. The calculator shows this implied lifetime next to your churn rate.
Is this churn rate calculator free?
Yes. No signup and no limits, and every calculation runs in your browser, so your numbers are never stored or sent anywhere.