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Customer Churn Rate Calculator.

Customer churn, revenue churn, and retention rate from your numbers at the start and end of a period.

Customer churn rate

%

Revenue churn rate

%

Retention rate

%

This does not net out new customers or expansion revenue gained during the same period — it measures churn on its own. Pair it with new-business and expansion numbers to see net revenue retention, a separate figure.

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Two Different Churn Numbers

Customer churn and revenue churn measure different things and can move independently. Losing twenty small customers and losing two enterprise customers can produce the same customer churn rate while producing very different revenue churn rates, depending entirely on what each lost customer was paying.

Formulas

Customer Churn Rate = Customers Lost ÷ Customers at Start × 100
Revenue Churn Rate = MRR Lost ÷ MRR at Start × 100
Retention Rate = 100% − Customer Churn Rate

Both formulas use the customer count or revenue figure at the start of the period as the denominator, not the end — a common source of inconsistent churn numbers between teams reporting the same underlying data differently.

What Counts as a Healthy Churn Rate

Acceptable churn varies enormously by customer segment and contract length, which is why a single benchmark number applied across all SaaS businesses is not particularly useful on its own.

Small-business SaaS: under 5% monthly

Smaller customers churn more often — shorter decision cycles, more price sensitivity, and a shorter typical business lifespan for the smallest accounts all push this segment's churn higher than enterprise.

Enterprise SaaS: under 1% monthly

Longer contracts, higher switching costs, and more stakeholders involved in a cancellation decision all push enterprise churn lower — but each lost account also represents far more revenue.

Annual contracts change the math

A business billing annually will show near-zero monthly churn between renewal dates and a spike at renewal — comparing its monthly figure directly against a monthly-billed competitor's understates the annual business's real churn exposure.

Churn Is Not the Whole Picture

A business can have meaningful churn and still grow revenue overall, if expansion revenue from existing customers — upgrades, seat additions, upsells — outpaces what churn removes. That combined figure is called net revenue retention, and it is calculated separately from the churn rate alone, using new and expansion revenue this tool does not collect.

Knowledge Base

Churn Rate and Retention Methodology.

Churn rate measures what a business is losing, in customers or in revenue, over a given period — and the two versions of that measurement, customer churn and revenue churn, can tell very different stories from the same underlying events.

The Calculation Branch

Customer Churn Rate = Customers Lost ÷ Customers at Start × 100 | Revenue Churn Rate = MRR Lost ÷ MRR at Start × 100 | Retention Rate = 100% − Customer Churn Rate

Industrial Standards.

This tool divides customers lost, and separately MRR lost, by their respective starting-period totals, expressed as a percentage. It reports customer churn, revenue churn, and the retention rate that follows directly from customer churn. It does not incorporate new customers acquired or expansion revenue from existing customers during the same period — those factor into net revenue retention, a related but separate calculation.

In-Depth Analysis & Reference Data

Revenue churn is arguably the more consequential number for forecasting, since it reflects actual dollars lost rather than a customer count that treats a $10-per-month account the same as a $10,000-per-month one. A business can post a low customer churn rate while a small number of large accounts leaving drives a much higher revenue churn rate — the gap between the two numbers is itself informative about how concentrated revenue is among a few large customers.

Cohort-based churn analysis, tracking a specific group of customers who joined in the same period over their subsequent lifetime, reveals patterns a single blended churn rate across the whole customer base can hide — such as churn concentrated heavily in the first 90 days after signup, a common pattern this simple calculation does not surface on its own.

Registry Questions & FAQ.

Should churn be measured monthly or annually?

Whichever matches the billing cycle of the business being measured, and consistently — comparing a monthly-billed business's monthly churn against an annually-billed business's monthly churn understates the annual business's real churn, since most of its cancellations concentrate at renewal rather than spreading evenly across the year.

Does a low customer churn rate always mean a healthy business?

Not on its own — check revenue churn alongside it. A business can hold a low customer churn rate while losing a small number of its largest, most valuable accounts, which a customer-count-only view would understate.

All metrics verified against ISO/ASTM benchmarks.