Churn Rate Calculator
Calculate customer churn rate, retention rate, MRR impact, and net revenue churn. Compare gross vs. net churn, estimate customer lifetime, and benchmark against industry standards.
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Churn Rate
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Retention Rate —
MRR Lost —
Extended More scenarios, charts & detailed breakdown ▾
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Monthly Churn Rate
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Retention Rate —
MRR Lost —
Avg Customer Lifetime —
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Gross Churn Rate
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Net Revenue Churn —
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Net MRR Impact —
Break-even CAC —
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How to Use This Calculator
- Enter customers at start of the period (month or quarter).
- Enter customers lost during that period.
- Enter average MRR per customer to see revenue impact.
- See churn rate, retention rate, and MRR lost instantly.
- Use Annual Churn tab to compound monthly churn to annual rate.
- Use Revenue Churn tab to calculate gross vs. net MRR churn.
Formula
Churn Rate = Customers Lost ÷ Customers at Start × 100
Annual Churn = 1 − (1 − Monthly Churn)^12
Customer Lifetime = 1 ÷ Monthly Churn Rate
Net Revenue Churn = (MRR Lost − Expansion MRR) ÷ Starting MRR × 100
Example
1,000 customers, 50 lost, $100 avg MRR: Churn = 50÷1,000 = 5%. Retention = 95%. MRR lost = 50×$100 = $5,000. Annual churn = 1−(0.95)^12 = 46%. Customer lifetime = 1÷0.05 = 20 months.
Frequently Asked Questions
- For SaaS companies, monthly churn of 0.5–2% (6–24% annually) is typical, but best-in-class is <0.5%/month. Enterprise SaaS often sees 0.1–0.5%/month. Consumer subscription services average 3–5%/month. Lower is always better — high churn prevents growth.
- Gross revenue churn counts only MRR lost from cancellations and downgrades. Net revenue churn subtracts expansion MRR (upgrades, upsells, cross-sells). Companies with strong expansion can achieve negative net churn — meaning existing customers grow faster than others leave.
- Customer Lifetime = 1 ÷ Monthly Churn Rate. At 2% monthly churn, average lifetime = 50 months. At 5% churn, lifetime = 20 months. LTV = Monthly Revenue × Customer Lifetime. Cutting churn in half can double your LTV.
- Identify at-risk customers early (low engagement, missed payments). Implement onboarding to drive activation. Build customer success programs. Create lock-in through integrations and data. Collect exit surveys to understand root causes. Address pricing objections proactively.
- Negative net revenue churn occurs when expansion revenue (upsells, upgrades) from existing customers exceeds revenue lost from churn. This is the holy grail for SaaS — existing customers generate growth even without new customer acquisition.