Churn Rate Calculator

Calculate what percentage of customers you're losing

Enter your customer data:

Don't count new customers acquired during this period

What is Churn Rate?

Churn rate measures the percentage of customers who stop using your product during a given period. It's the inverse of retention rate.

Formula:

Churn Rate = (Lost Customers / Starting Customers) × 100

Annual Benchmarks:

Segment Good Great
B2C SaaS 31-46% <22%
B2B SMB 26-46% <17%
B2B Enterprise 11-22% <6%

Monthly churn should be roughly 1/12 of annual churn.

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Frequently Asked Questions

What's the difference between churn rate and retention rate? ▼
They're inverses: Retention Rate = 100% - Churn Rate. If your monthly churn is 5%, your monthly retention is 95%. Both metrics tell the same story from different perspectives - churn focuses on loss, retention on keeping customers.
What's a good churn rate? ▼
It depends on your segment. B2C products typically see higher churn (3-7% monthly) than B2B (1-2% monthly). Enterprise B2B should aim for less than 1% monthly. A 5% monthly churn means losing about 46% of customers annually.
Should I calculate customer churn or revenue churn? ▼
Both! Customer churn counts lost accounts. Revenue churn (MRR churn) measures lost revenue, which matters more if you have varied pricing. You could have low customer churn but high revenue churn if large customers leave.
How can I reduce churn? ▼
Focus on: (1) Better onboarding to drive early engagement, (2) Identifying at-risk customers before they leave, (3) Understanding why customers churn through exit surveys, (4) Improving product value and stickiness, (5) Proactive customer success outreach.
How do I convert monthly to annual churn? ▼
Don't just multiply by 12! Use: Annual Churn = 1 - (1 - Monthly Churn)^12. For example, 5% monthly churn = 1 - (0.95)^12 = 46% annual churn, not 60%. This accounts for compounding.

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