Churn Rate Calculator

Churn rate: customer attrition

Churn rate is the share of customers (or revenue) you lose over a period: churn = customers lost / customers at start. Say you open the month with 1,000 customers and lose 50. That is 5% monthly churn, or 95% retention. To switch between periods, use annual churn ≈ 1 − (1 − monthly)¹². Two variants come up a lot. Gross churn counts cancellations only, while net churn subtracts expansion revenue from upsell and cross-sell. In a healthy SaaS business net churn can even go negative, which means the existing base grows on its own without any new sales.

Applications and benchmarks

It is one of the core metrics in SaaS, subscriptions and customer success, and it feeds straight into CLV (Customer Lifetime Value), which you can approximate as ARPU / monthly churn. As a rough guide for healthy SaaS: B2B SMB runs around 3-7% monthly, mid-market about 1-2%, and enterprise below 1%. B2C swings more widely; streaming services such as Netflix tend to sit around 2-3% monthly.

FAQ

Churn by customer or by revenue? Track both. Losing a single large account barely moves customer churn but can blow a hole in revenue churn.

Why does small monthly churn compound? Run 5% a month for a year and you have shed about 46% of the base. Those small percentages stack up fast.

Voluntary vs involuntary churn? Voluntary is the customer deciding to cancel. Involuntary is a payment failure, like an expired card, and that kind is usually recoverable with dunning.