Free tool · Churn
Churn Rate Calculator
Churn rate is the share of customers you lose over a period — the single number that decides whether growth compounds or leaks away. Enter how many customers you started with and how many you lost to see your churn rate, retention rate, and the average lifespan they imply.
Churn is easy to measure — easy to measure wrong
The formula is one line. The trouble is deciding what counts as a customer, what counts as lost, and over what window — three choices that quietly change the number.
The period defines the number
A 5% monthly churn and a 5% annual churn are wildly different businesses. Always state the window, and never compare a monthly rate to an annual one — annualising naively (×12) overstates loss because the base shrinks each month.
Customer churn vs revenue churn
Counting logos lost treats a $50 account and a $50,000 account the same. Revenue churn weights each loss by its value and can move in the opposite direction — high logo churn with low revenue churn means you are shedding small accounts.
Mind the new customers
Churn should be measured against the cohort present at the start of the period, not a base inflated by mid-period signups. Mixing new joiners into the denominator flatters the rate and hides how leaky the bucket really is.
Calculate your churn rate
Enter customers at the start and how many you lost.
The number of active customers (or subscribers) at the beginning of the period you are measuring.
How many of those customers cancelled, lapsed, or did not renew during the period.
Waiting for input
Enter the customers you started the period with and how many you lost to see your churn rate.
Churn = customers lost ÷ customers at start × 100. Retention = 100 − churn.
What is churn rate?
Churn rate is the percentage of customers (or subscribers) who stop doing business with you over a defined period. It is the inverse of retention: if you keep 90% of customers, you churned 10%.
Because retention compounds, churn is the dominant lever on long-term value. A small change in the monthly rate has an outsized effect on the average customer lifespan — and therefore on lifetime value and the economics of every dollar you spend on acquisition.
Calculate churn rate
Churn rate = Customers lost ÷ Customers at start × 100
Start with 1,000 customers, lose 50 → churn = 50 ÷ 1,000 × 100 = 5%
Retention rate
Retention rate = 100 − Churn rate
100 − 5 = 95% retention
Implied average lifespan
Average lifespan = 1 ÷ Churn rate (as a fraction)
1 ÷ 0.05 = 20 periods — at 5% monthly churn, the average customer stays ~20 months
How to use this churn rate calculator
Two numbers from the same period — the rest is derived.
Fix the period and the base
Pick a consistent window (usually a month) and count the customers active at the very start of it. Exclude anyone who joined mid-period from this base so the denominator stays clean.
Count only those who left
Enter the customers from that starting cohort who cancelled, lapsed, or failed to renew during the period. Do not net out new signups — measure gross loss against the opening base.
Read churn next to lifespan and LTV
The calculator shows the average lifespan your churn implies (1 ÷ churn rate). Carry that into your LTV and CAC math: lifespan is what turns a monthly rate into a number you can plan acquisition spend against.
What is a good churn rate?
It depends heavily on model and segment. Healthy B2B SaaS often runs around 1% monthly logo churn (under ~5–7% annually), while SMB and consumer products tolerate more. The benchmark that matters is your own trend and whether net revenue retention exceeds 100% once expansion is counted.
What is the difference between customer churn and revenue churn?
Customer (or logo) churn counts how many accounts you lose, treating every account equally. Revenue churn weights each loss by its value, so losing one large account hurts more than several small ones. Track both — they can diverge, and revenue churn (especially net of expansion) is the truer health signal.
How do I convert monthly churn to annual?
Do not simply multiply by 12. Because each month churns the survivors of the previous month, the correct conversion is annual churn = 1 − (1 − monthly churn)^12. At 5% monthly, that is about 46% annually, not 60%.
How does churn relate to customer lifetime?
Average lifespan is the reciprocal of the churn rate expressed as a fraction: 1 ÷ churn. At 5% monthly churn the average customer stays roughly 20 months. That lifespan feeds directly into LTV, which in turn sets how much you can afford to spend on acquisition.
One metric is a number — Multiply connects them all
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