Churn Rate Calculator
(Customer & Revenue Churn Tool)
Enter the customers you had at the start of a month and the customers you lost to get monthly churn, the annual rate it compounds to, and revenue churn.
Step 1 — Customer Churn
Calculated Results
Enter starting customers and customers lost to calculate churn rate.
This churn rate calculator works out the percentage of customers a business loses in a month. Enter the customers you had at the start of the month and the number who cancelled. It shows the monthly churn rate, the annual rate that monthly rate compounds to, and the customers left. Open the revenue churn section to measure the recurring revenue lost as well.
How to Calculate Churn Rate
Churn rate is the customers lost in a period divided by the customers at the start of it.
A business that starts the month with 500 customers and loses 20 has a churn rate of 20 ÷ 500 × 100 = 4%, and 480 of those customers remain.
Use the starting number only. Customers who signed up during the month are not part of it, and adding them makes churn look lower than it is.
Monthly Churn to Annual Churn
Annual churn is not twelve times monthly churn. Each month's loss comes out of a group that is already smaller, so the losses compound.
| Monthly churn | 12 × monthly | Annual churn (compounded) |
|---|---|---|
| 1% | 12% | 11.4% |
| 2% | 24% | 21.5% |
| 3% | 36% | 30.6% |
| 4% | 48% | 38.7% |
| 5% | 60% | 46.0% |
| 8% | 96% | 63.2% |
The gap grows with the rate. At 8% a month the simple multiplication says almost every customer is gone in a year, when in fact about 37% are still there. The calculator's annual figure uses the compounded formula and assumes the numbers you entered cover one month.
Customer Churn and Revenue Churn
Customer churn treats every account as equal. Revenue churn weighs each one by what it paid.
With $25,000 of monthly recurring revenue at the start of the month and $1,200 lost, revenue churn is 1,200 ÷ 25,000 × 100 = 4.8%. If customer churn in the same month was 4%, the accounts that left were larger than average.
This is gross revenue churn: it counts only what was lost. Net revenue churn subtracts the extra revenue from existing customers who upgraded, and it can be negative. The Net Revenue Retention Calculator covers that side, and the MRR Calculator gives the starting figure.
What Churn Means for Customer Lifetime
If churn holds steady, the average time a customer stays is 1 divided by the churn rate.
| Monthly churn | Average customer lifetime |
|---|---|
| 1% | 100 months |
| 2% | 50 months |
| 4% | 25 months |
| 5% | 20 months |
Halving churn doubles the lifetime, and with it the lifetime value of each customer. That figure feeds the LTV:CAC Ratio Calculator.
What Is a Good Churn Rate?
There is no single figure, because churn depends on price, contract length and who the customers are. Annual contracts sold to businesses lose far fewer customers each month than low-priced monthly plans sold to consumers. One reference point comes from David Skok's SaaS Metrics 2.0, which says that net revenue churn above 2% a month indicates something is wrong in a SaaS business; 2% a month compounds to about 21.5% a year. Compare your rate with your own earlier months first. A single month can also mislead: customers in their first weeks usually leave at a higher rate than long-standing ones, so a month with many new sign-ups pushes later churn up.
How to Use the Churn Rate Calculator
- Enter customers at the start: Type the number of customers you had on the first day of the month.
- Enter customers lost: Type how many of those customers cancelled during the month. Do not subtract new customers.
- Read the result: The calculator shows the monthly churn rate, the annual rate it compounds to, and the customers left.
- Add revenue churn: Optional. Open the revenue churn section and enter starting MRR and the MRR lost to cancellations and downgrades.
Frequently Asked Questions
How do I calculate churn rate?
Divide the customers lost in a period by the customers you had at the start of it, then multiply by 100. A business that starts a month with 500 customers and loses 20 has a churn rate of 20 ÷ 500 × 100 = 4%.
How do I convert monthly churn to annual churn?
Use 1 − (1 − monthly rate)^12. At 4% a month, 0.96 to the power of 12 is 0.613, so annual churn is 38.7%. Multiplying 4% by 12 gives 48%, which is too high, because each month's loss is taken from a smaller group.
Do new customers count in the churn formula?
No. The standard formula divides customers lost by customers at the start of the period. Customers who joined during the period are left out of the starting number.
What is the difference between customer churn and revenue churn?
Customer churn counts accounts. Revenue churn counts the recurring revenue those accounts paid. Losing 20 small accounts and losing 20 large ones is the same customer churn and very different revenue churn.
What is a good churn rate?
It depends on the business and the price. As one reference point, David Skok's SaaS Metrics 2.0 says net revenue churn above 2% a month is a sign that something is wrong in a SaaS business. Consumer subscriptions usually lose customers faster than business software.
How long does the average customer stay?
Divide 1 by the churn rate. At 4% monthly churn the average customer stays 1 ÷ 0.04 = 25 months, if the rate does not change.
The 2% monthly revenue churn reference was checked against David Skok's SaaS Metrics 2.0 in October 2026.