Churn Rate Calculator
Calculate your customer churn rate, retention rate, and average customer lifetime. Optionally enter ARPU to see revenue churn impact.
Churn Rate Formulas
Frequently Asked Questions
For SaaS businesses, a monthly churn rate below 2% is generally considered good. Enterprise SaaS often achieves below 1% monthly. Consumer apps typically see 3%–8% monthly churn.
Customer churn measures the number (or percentage) of customers lost. Revenue churn (MRR churn) measures the monthly recurring revenue lost. High-value customers churning can have an outsized revenue impact even if customer count churn is low.
Annual churn ≈ 1 − (1 − monthly churn)^12. For example, a 2% monthly churn rate gives an annual churn of approximately 21.5%, not just 24%. This is because you lose customers from a shrinking base each month.
Common causes include poor onboarding, unmet expectations, pricing issues, lack of product-market fit, competition, and poor customer support. Analysing exit surveys and cohort data helps identify root causes.
Related Calculators
Customer Lifetime Value Calculator
Calculate CLV/LTV to understand long-term revenue per customer.
SaaS MRR Calculator
Calculate Monthly Recurring Revenue (MRR) including new, expansion, contraction, and churned MRR.
SaaS ARR Calculator
Calculate Annual Recurring Revenue (ARR) from MRR, contracts, and growth metrics.