Churn Rate Calculator
Calculate customer and revenue churn rates. Track retention and understand why customers leave your SaaS.
Customer Churn Rate
Percentage of customers who cancel in a given period
Churn % = (Lost / Start) × 100
Example: 5 lost / 100 = 5% churn
Revenue Churn Rate
Percentage of MRR lost from cancellations and downgrades
MRR Churn % = (Lost MRR / Start MRR) × 100
Example: $5K lost / $100K = 5%
Churn Rate Benchmarks
Consumer SaaS
5-7%
Monthly churn
SMB SaaS
3-5%
Monthly churn
Mid-Market
1-2%
Monthly churn
Enterprise
<1%
Monthly churn
Annual Churn Target: Below 20% for healthy SaaS
Types of Churn
Gross Churn
Total revenue or customers lost (cancellations + downgrades only)
Includes:
• Cancelled subscriptions
• Downgraded plans
• Failed payments (involuntary churn)
Net Churn
Gross churn minus expansion revenue (can be negative!)
Formula:
Net Churn = Gross Churn - Expansion
Negative Net Churn = Growth without new customers!
Net Revenue Retention (NRR)
NRR measures revenue retention from existing customers, including expansions
NRR = (Start MRR + Expansion - Churn - Contraction) / Start MRR
Example: ($100K + $20K - $5K - $3K) / $100K = 112% NRR
<90%
Poor retention
90-110%
Acceptable
>120%
World-class
How to Reduce Churn
Improve Onboarding
- • 90% of churn happens in first 90 days
- • Create clear onboarding checklist
- • Offer personalized setup calls
- • Track time-to-value metrics
Proactive Support
- • Monitor usage patterns
- • Reach out before they have problems
- • Offer regular check-ins
- • Build customer success team
Product Value
- • Ship features customers want
- • Communicate value regularly
- • Show ROI and success metrics
- • Continuous product improvement
Annual Contracts
- • Reduce voluntary churn
- • Offer discounts for annual plans
- • Better cash flow predictability
- • Lower effective churn rate
Related Calculators
Calculate Your SaaS Metrics
Track churn rate alongside LTV, CAC, and other critical SaaS metrics
Start Calculating