Churn Rate Calculator
Churn rate measures the percentage of customers who cancel in a given period. Even small changes in churn have an outsized impact on long-term revenue — a 1% improvement compounds dramatically over time.
Monthly Churn
5.0%
Annual Churn
46.0%
Annual Retention
54.0%
Formulas:
Monthly Churn = Lost Customers / Starting Customers
Annual Churn = 1 - (1 - Monthly Churn)^12
What's a Good Churn Rate?
“Good” churn depends heavily on your segment. Consumer subscriptions naturally churn faster than enterprise contracts. Here are typical monthly churn benchmarks:
Enterprise SaaS
<0.5%
~6% annual
Mid-Market SaaS
1–2%
~12–22% annual
SMB SaaS
3–5%
~30–46% annual
Consumer Subscriptions
5–10%
~46–72% annual
How Churn Rate Is Calculated
Monthly Churn = Customers Lost / Customers at Start of Month
Annual Churn = 1 − (1 − Monthly Churn)12
The annual formula compounds monthly churn — it's not simply monthly churn × 12. A 5% monthly churn rate actually means ~46% annual churn, not 60%, because each month you're losing 5% of a smaller base.
Logo churn vs. revenue churn: This calculator measures logo (customer) churn. Revenue churn can differ if larger customers churn at different rates than smaller ones. Track both to get the full picture.
Get the playbook every Thursday
Weekly strategies for subscription businesses. Real companies, real numbers, tactics you can steal. From the operator who grew Codecademy from $10M to $50M ARR.