Churn Rate Calculator

Churn rate = Customers (or revenue) lost during the period ÷ Customers (or revenue) at the start of the period × 100. Retention rate is simply 100% minus the churn rate.

Customer churn counts lost accounts (logos), treating every customer equally regardless of size. Revenue churn (using MRR) also captures downgrades and upgrades among customers who stayed — a business can have low customer churn but high revenue churn if its biggest accounts downgrade.

Churn compounds: surviving customers shrink multiplicatively each month, not linearly. A 5% monthly churn rate compounds to about 46% annualized (1 − (1−0.05)^12), not simply 5%×12=60% — though the multiplicative effect means the real annual attrition is still substantial.

For subscription businesses, under 5% monthly churn is generally considered healthy, 5-10% is worth investigating, and above 10% monthly usually signals a retention problem. Acceptable churn varies a lot by customer segment — enterprise SaaS typically has much lower churn than consumer subscriptions.