Churn Rate Calculator

Calculate your customer churn rate and understand retention health

Starting Customers

Lost Customers

Time Period

ARPU (Monthly)

Churn Analysis

Monthly Churn Rate

25 of 500 customers

Retention Rate

95%

Annualized Churn

45.96%

20 mo

Avg Lifetime

$1,225

Revenue Lost

$980

Customer LTV

Good churn rate. This is within acceptable range for most SaaS businesses. Consider improving onboarding to reduce further.

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Multiple Periods

Calculate churn for monthly, quarterly, or annual periods with automatic annualization.

Revenue Impact

See the financial impact of churn in dollars, not just percentages.

Health Analysis

Get instant feedback on whether your churn rate is within healthy range for SaaS.

LTV Calculation

Automatically calculates customer lifetime value based on your churn rate and ARPU.

About This Calculator

Churn rate measures the percentage of customers who cancel their subscriptions within a given period. It is the inverse of retention and one of the most important health indicators for any SaaS business. High churn erodes MRR, inflates customer acquisition costs, and signals product-market fit issues. This calculator computes your churn rate across monthly, quarterly, or annual windows and shows you the corresponding retention rate and projected revenue impact over time.

How to Use

Enter the number of customers at the start of the period and the number who cancelled during that period.

Select the time period -- monthly, quarterly, or annual -- to match your reporting cadence.

Review your churn rate, retention rate, and the projected impact on revenue if churn continues at the current pace.

Frequently Asked Questions

What is a good churn rate for SaaS?

For B2B SaaS, a monthly churn rate of 1-2% (roughly 12-22% annually) is considered acceptable. Enterprise SaaS with annual contracts often sees less than 1% monthly churn. B2C SaaS typically runs higher at 3-7% per month. The key benchmark is whether your net revenue retention (accounting for expansion) exceeds 100%.

What is the difference between customer churn and revenue churn?

Customer churn (logo churn) counts the number of accounts lost regardless of their plan size. Revenue churn measures the MRR lost from cancellations and downgrades. A company can have high customer churn but low revenue churn if mostly small accounts leave while larger accounts stay and expand. Tracking both gives a complete picture.

How can I reduce churn?

Start by analyzing why customers leave -- run exit surveys and segment churn by cohort, plan, and usage. Common reduction tactics include improving onboarding to drive faster time-to-value, adding proactive health scoring to identify at-risk accounts, offering annual plans with a discount, and building features that increase switching costs through deeper integration into customer workflows.