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Churn Rate Calculator

Calculate your customer churn rate, retention rate, annualized churn, and estimated LTV. Compare against SaaS industry benchmarks — all in your browser.

Quick Takeaway

The average B2B SaaS monthly churn rate is 3-5%, while top-quartile companies achieve 1-2%. Churn above 7% monthly (84% annually) is unsustainable. A 5% monthly churn compounds to 46% annual loss — not 60%, because the customer base shrinks each month (formula: 1 - (1-0.05)^12). Even with strong growth, this is unsustainable. This calculator shows your churn in under 10 seconds and benchmarks it against your industry.

Sources: ProfitWell 2025 SaaS Metrics Benchmark, ChartMogul SaaS Churn Report 2025, OpenView SaaS Benchmarks. See Core Data below for full methodology.

Your Numbers

#
Number of customers at the beginning of the period
#
Customers who canceled or failed to renew during the period
Select the period your numbers cover — affects annualized churn calculation
$
Optional — used to calculate estimated LTV
B2B SaaS averages 3-5% monthly churn; B2C averages 5-7%
Your Churn Rate
—
Enter your numbers to calculate
Retention Rate
—
Customers who stayed
Annualized Churn
—
Compounded yearly
Industry Benchmark
3-5%
B2B SaaS monthly
Estimated LTV
—
Enter ARPU to calculate

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Core Data & Metrics

Metric Value Source Test Conditions
B2B SaaS Average Monthly Churn 3-5% ProfitWell 2025 Sales-led B2B SaaS, ACV > $5,000
Top-Quartile B2B SaaS Churn 1-2% ChartMogul 2025 Top 25% of 2,000+ SaaS companies
B2C SaaS Average Monthly Churn 5-7% ProfitWell 2025 Self-serve B2C, lower ACV
E-commerce Subscription Churn 6-8% monthly HubSpot 2025 DTC subscription boxes, meal kits
Unsustainable Churn Threshold > 7% monthly OpenView SaaS Benchmarks 84% annualized — faster than replacement
Healthy Net Revenue Retention > 100% OpenView SaaS Benchmarks Expansion offsets gross churn
Churn Impact: 5% monthly 46% annual loss Calculated (1 - 0.05)^12 = 0.54 retained

Who This Is For

SaaS Founders

Track monthly churn and retention. Know exactly how many customers you're losing before it hits your MRR growth.

Customer Success Teams

Measure the effectiveness of retention programs. Compare churn before and after onboarding changes or QBR cadence.

Investors & Analysts

Evaluate portfolio company health. Quick sanity check on churn rates and implied LTV without complex spreadsheets.

Product Managers

Correlate product changes with churn trends. Identify which features or onboarding steps reduce cancellation rates.

Limitations & Best Practices

  • Gross vs. net churn: This calculator computes gross churn (customers lost ÷ starting customers). Net churn accounts for expansion revenue and downgrades — a company can have 5% gross churn but negative net churn if expansions exceed losses. Always specify which metric you're reporting.
  • Logo churn vs. revenue churn: Customer count churn (logo churn) differs from revenue churn. Losing 5 enterprise customers ($500/mo each) hurts more than losing 5 self-serve customers ($10/mo each). Calculate both for a complete picture.
  • Time period alignment: Starting customers and lost customers must cover the exact same period. If you measure Jan 1-31, count cancellations that occurred in January — not cancellations effective in February.
  • Annualized churn compounds: Monthly churn does not simply multiply by 12. 5% monthly churn = 46% annual loss, not 60%. Use the formula (1 - monthly_churn)^12 for accurate annualization. This calculator handles this automatically.
  • LTV is an estimate: Simple LTV = ARPU ÷ monthly churn. This assumes constant churn and no expansion. More accurate LTV accounts for gross margin, cohort behavior, and revenue growth. Use our CLV Calculator for a detailed model.
  • New customers during period: The standard formula divides lost customers by starting customers, not ending customers. If you gained 100 and lost 50, churn is 50 ÷ starting_customers, not 50 ÷ (starting + 100). This calculator uses the standard starting-customer denominator.
  • Seasonal effects: Churn often spikes in December (budget cuts) and Q1 (new year resolutions). Compare same-period year-over-year rather than month-over-month to avoid seasonal false alarms.

How This Compares

Feature This Calculator Spreadsheet Formula Expensive Analytics Tools
Churn rate calculation Instant, no formula needed Requires manual formula entry Automated but needs integration
Annualized churn (compounded) Auto-calculated correctly Often wrong (×12 instead of ^12) Available on premium plans
Industry benchmark comparison Built-in (5 industries) Must research separately Often not included
Estimated LTV Auto-calculated with ARPU Requires second formula Available on premium plans
Data privacy 100% local browser Local file Data sent to vendor servers
Cost Free Free (if you have Excel) $50-$500/month

Frequently Asked Questions

What is the formula for churn rate?

Churn Rate = (Customers Lost During Period ÷ Customers at Start of Period) × 100. For example, if you start with 1,000 customers and lose 35 in a month, your monthly churn is 35 ÷ 1,000 = 3.5%. The denominator is always starting customers, not ending customers or average customers — this is the industry standard.

What is a good churn rate for SaaS?

For B2B SaaS, 3-5% monthly churn is average. Top-quartile companies achieve 1-2%. Churn above 7% monthly (84% annualized) is unsustainable — you're losing customers faster than you can replace them. Note: these are gross churn figures. Net churn can be negative if expansion revenue exceeds losses, which is a sign of a healthy product.

How do I annualize monthly churn?

Do NOT multiply by 12 — that overstates churn. The correct formula is: Annual Churn = 1 - (1 - Monthly Churn)^12. For example, 5% monthly churn = 1 - (0.95)^12 = 1 - 0.54 = 46% annual churn. This calculator compounds monthly churn automatically for accurate annualization. Quarterly churn annualizes as 1 - (1 - quarterly_churn)^4.

What is the difference between gross and net churn?

Gross churn measures only customers lost (or revenue lost from cancellations). Net churn subtracts expansion revenue (upgrades, upsells) from gross churn. A company with 5% gross churn and 8% expansion has -3% net churn — meaning revenue grows even as customers leave. Net revenue retention (NRR) above 100% is the gold standard for SaaS.

How is LTV calculated from churn?

Simple LTV = ARPU ÷ Monthly Churn Rate. For example, $49 ARPU with 3.5% monthly churn = $49 ÷ 0.035 = $1,400 LTV. This is the simple formula. More accurate LTV accounts for gross margin: LTV = (ARPU × Gross Margin %) ÷ Churn Rate. If churn is 0%, LTV is theoretically infinite — in practice, cap at 60 months (5 years) as a realistic upper bound.

How can I reduce my churn rate?

Five proven levers: (1) Improve onboarding — 40% of churn happens in the first 30 days, so a great first experience is critical. (2) Implement proactive outreach (QBRs, check-ins) before customers consider canceling. (3) Fix the top 3 reasons customers leave — survey canceled customers and address the root causes. (4) Build expansion paths so customers grow with you. (5) Measure cohort churn, not just aggregate — a 5% average might hide 15% churn in new customers and 1% in long-term customers.

Should I use logo churn or revenue churn?

Track both. Logo churn (customer count) tells you how many relationships you're losing. Revenue churn tells you the financial impact. Losing 5% of customers might only be 2% revenue churn if they're low-value accounts — or it could be 10% revenue churn if you're losing enterprise customers. Investors care most about net revenue retention (NRR), which combines both.

Is my data sent to your servers?

No. All calculations run locally in your browser. Your customer counts and revenue numbers are never sent to our servers or any third party. Page visit analytics (anonymous, no input data) may be collected by Cloudflare. Your business metrics never leave your device.

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