Churn Rate Calculator

Calculate customer churn rate, retention rate, and revenue churn for subscription businesses. Track customer loss and lifetime value metrics.

Customer Churn Rate = (Customers Lost / Starting Customers) * 100 | Retention Rate = 100 - Churn Rate | MRR Churn Rate = (MRR Lost / Starting MRR) * 100 | Net MRR Churn = (MRR Lost - Expansion MRR) / Starting MRR * 100
Example: Started with 1,000 customers, lost 50, gained 100 new ones. Churn Rate = 5%, Retention = 95%, Net Growth = +5%. If MRR was $50,000, lost $2,500 MRR, but gained $1,500 expansion MRR: Gross MRR Churn = 5%, Net MRR Churn = 2%.

What is a good churn rate?

It varies by industry. SaaS companies: 5-7% annually is excellent, 10-15% is average, above 20% is concerning. B2C subscriptions typically have higher churn (5-10% monthly). Enterprise SaaS often has lower churn (1-2% monthly). Compare to your industry benchmarks and focus on improving over time.

How is churn rate different from retention rate?

Churn rate measures the percentage of customers lost, while retention rate measures the percentage kept. They are inversely related: Retention Rate = 100% - Churn Rate. For example, 5% churn = 95% retention. Both metrics are important for tracking customer loyalty.

What is revenue churn vs customer churn?

Customer churn counts the number of customers lost. Revenue churn (MRR churn) measures the dollar value of recurring revenue lost. Revenue churn can be lower if you lose small customers or higher if you lose large accounts. Both metrics matter - track them together.

How can I reduce customer churn?

Key strategies: improve onboarding experience, provide excellent customer support, regularly engage with customers, address issues proactively, offer value-add features, create customer success programs, identify at-risk customers early, gather and act on feedback, and ensure product-market fit.

What is negative churn?

Negative churn occurs when expansion revenue from existing customers (upgrades, upsells) exceeds revenue lost from churned customers. This is ideal for SaaS growth - your existing customer base grows in value faster than you lose customers. It indicates strong product-market fit and customer success.