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
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 type | Typical monthly churn | Average lifetime |
|---|---|---|
| B2B SaaS, annual plans | 1–2% | 4–8 years |
| B2B SaaS, monthly plans | 2–4% | 2–4 years |
| Consumer subscription app | 5–10% | 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.