Churn Rate Calculator
Churn rate measures the percentage of customers or subscribers who stop using a product or service during a given time period. High churn destroys recurring revenue; reducing churn by just 1–2% can dramatically improve long-term revenue.
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Tip: Track revenue churn alongside customer churn — losing a large customer while gaining many small ones can mask a serious revenue problem.
- 1Count customers at the start of the period
- 2Count customers lost (cancelled, not renewed) during the period
- 3Churn rate = (Customers lost / Start customers) × 100%
- 4Monthly and annual churn compound — 5% monthly churn = 46% annual churn
1,000 customers start · 30 cancelled=3% monthly churnHealthy for B2C; high for B2B
5% monthly churn=46% annual churnNearly half your base gone each year
| Monthly churn | Annual retention | Annual churn |
|---|---|---|
| 1% | 88.6% | 11.4% |
| 2% | 78.5% | 21.5% |
| 3% | 69.7% | 30.3% |
| 5% | 54% | 46% |
| 10% | 28.2% | 71.8% |
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Fun Fact
SaaS companies with sub-2% monthly churn (under 22% annual) are considered healthy. Top-quartile B2B SaaS companies achieve below 1% monthly churn.
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