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Churn rate calculator

Measure how many customers and how much MRR you lose each month, your net revenue retention and how long an average customer stays.

Results

Monthly customer churn
5.5%
Monthly revenue churn
6.5%
Net revenue retention (monthly)
95.5%
Annualised customer churn
1 − (1 − monthly)^12
49.3%
Average customer lifetime
1 ÷ monthly churn
18.2 months

Churn formulas

  • Customer churn = customers lost ÷ customers at the start × 100
  • Revenue churn = MRR lost (cancellations + downgrades) ÷ MRR at the start × 100
  • Net revenue retention = (starting MRR − lost MRR + expansion MRR) ÷ starting MRR × 100
  • Annualised churn = 1 − (1 − monthly churn)^12
  • Average lifetime = 1 ÷ monthly churn (in months)

Benchmarks

Business typeTypical monthly churnAverage lifetime
B2B SaaS, annual plans1–2%4–8 years
B2B SaaS, monthly plans2–4%2–4 years
Consumer subscription app5–10%10–20 months

A 5% monthly churn sounds small, but it means losing 46% of customers in a year. When buying a SaaS, churn is what decides whether today's MRR is still there in twelve months: check it with our due diligence checklist, then plug it into the LTV calculator.

Frequently asked questions

How do you calculate churn rate?

Customer churn rate = customers lost during the period ÷ customers at the start of the period × 100. 22 cancellations out of 400 customers is a 5.5% monthly churn.

What is the difference between customer churn and revenue churn?

Customer churn counts accounts; revenue (MRR) churn counts dollars. If your biggest customers stay and small ones leave, revenue churn is lower than customer churn, and the reverse is a warning sign.

What is a good monthly churn rate for SaaS?

B2B tools often stay under 3% a month; consumer subscription apps commonly run at 5-10%. Annual plans lower churn mechanically, so compare like with like.

What is net revenue retention (NRR)?

NRR = (starting MRR − churned and downgraded MRR + expansion MRR) ÷ starting MRR. Above 100% means existing customers grow revenue faster than others leave.

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