Find out what percentage of customers you're losing over a given period
💡 Why This Matters Your churn rate tells you how well you're actually retaining customers — a number that's easy to lose sight of when you're focused on new signups. Track it consistently and you'll catch retention problems before they quietly erode your growth.
It typically costs 5 to 25 times more to acquire a new customer than to keep an existing one — which is exactly why a 1-2 point drop in churn can matter more than a big marketing push.
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Churn rate divides the number of customers you lost during a period by the number of customers you had at the start of that period, then multiplies by 100 to express it as a percentage: churn rate = customers lost ÷ customers at start × 100. Pick a consistent time frame — monthly, quarterly, or annual — and stick with it, since mixing periods makes comparisons meaningless.
A lower churn rate means you're retaining more of your existing customer base. What counts as "good" varies a lot by business model — enterprise SaaS companies often aim for 1-2% monthly churn, while consumer subscription apps commonly see 5-10% and still consider that healthy. The right benchmark is whatever's typical for businesses like yours.
This calculator measures customer count, not revenue — losing ten small accounts and losing your single biggest client both show up the same way here, even though the revenue impact is very different. If your customers pay different amounts, it's worth tracking revenue churn (sometimes called MRR churn) alongside customer churn for the full picture.
Track your churn rate over consistent periods to spot trends early — a slow upward creep is often easier to fix than a sudden spike you notice too late. Compare it against your industry's typical range, and if it's running high, look at where in the customer journey people are dropping off before assuming it's a pricing problem.
Example: Say you started the quarter with 2,932 customers and lost 386 of them by the end. Plug those into the formula: 386 ÷ 2,932 × 100 = 13.2% churn rate for the quarter.
It depends heavily on your industry and business model. SaaS companies serving large enterprises often see 1-2% monthly churn as healthy, small-business SaaS runs closer to 3-7%, and consumer subscription services often land around 5-10%. Below 3% monthly is generally considered solid for most subscription businesses.
Anyone who cancels a subscription, doesn't renew a contract, or otherwise stops doing business with you during the period you're measuring. The key is picking a consistent time period — monthly, quarterly, or annual — and sticking with it.
They're complementary and always add up to 100%. If your churn rate is 13%, your retention rate is 87%. Churn measures who you lost; retention measures who you kept.
A rough approximation is multiplying monthly churn by 12, but that overstates the real number because it ignores compounding. The more accurate formula is 1 minus (1 minus monthly churn rate) raised to the 12th power.