Churn Rate Calculator

What is churn rate?

Churn rate is the percentage of customers (or revenue) you lose over a given period, usually a month. It's one of the most important health metrics for any subscription business — a small change in churn compounds dramatically over a year, since it directly offsets whatever growth you're working to generate.

Worked example: you start the month with 200 customers and 8 of them cancel. Churn rate = (8 ÷ 200) × 100 = 4%. That same 4% monthly churn implies an average customer lifetime of 1 ÷ 0.04 = 25 months.

Customer churn vs revenue churn

Customer churn treats every lost customer the same, whether they were paying $10/mo or $10,000/mo. Revenue churn weights by dollars, so losing one large account can move it a lot more than losing several small ones. Tracking both gives you a fuller picture — a company can look healthy on customer churn while quietly losing its most valuable accounts on revenue churn.

FAQ

What's a good churn rate for SaaS?

As a rough, approximate benchmark: SMB-focused products typically see 3-8% monthly churn, while enterprise-focused products aim for under 1-2% monthly churn. Higher price points and longer contracts generally correlate with lower churn. Treat these as a compass, not a target — your acceptable churn rate depends heavily on your growth rate and customer acquisition cost.

Customer churn vs revenue churn — what's the difference?

Customer churn counts how many customers you lost, regardless of their plan size. Revenue churn measures the dollar value lost to cancellations and downgrades. A SaaS company can have low customer churn but high revenue churn if it's losing its biggest accounts, or the reverse if it's mostly losing small, low-value customers.

What is negative churn?

Negative churn happens when expansion revenue from existing customers — upgrades, seat additions, cross-sells — exceeds the revenue lost to cancellations and downgrades. When that happens, your net revenue grows even with zero new customers. It's considered one of the strongest signs of a healthy SaaS business.