Churn Rate Calculator
Churn rate measures the percentage of customers who cancel in a given period. Even small changes in churn have an outsized impact on long-term revenue — a 1% improvement compounds dramatically over time.
Monthly Churn
5.0%
Annual Churn
46.0%
Annual Retention
54.0%
Formulas:
Monthly Churn = Lost Customers / Starting Customers
Annual Churn = 1 - (1 - Monthly Churn)^12
What's a Good Churn Rate?
“Good” churn depends heavily on your segment. Consumer subscriptions naturally churn faster than enterprise contracts. Here are typical monthly churn benchmarks:
Enterprise SaaS
<0.5%
~6% annual
Mid-Market SaaS
1–2%
~12–22% annual
SMB SaaS
3–5%
~30–46% annual
Consumer Subscriptions
5–10%
~46–72% annual
How Churn Rate Is Calculated
Monthly Churn = Customers Lost / Customers at Start of Month
Annual Churn = 1 − (1 − Monthly Churn)12
The annual formula compounds monthly churn — it's not simply monthly churn × 12. A 5% monthly churn rate actually means ~46% annual churn, not 60%, because each month you're losing 5% of a smaller base.
Logo churn vs. revenue churn: This calculator measures logo (customer) churn. Revenue churn can differ if larger customers churn at different rates than smaller ones. Track both to get the full picture.
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