Churn Rate Calculator

What is churn rate?

Churn rate is the percentage of customers who stop doing business with you during a given period. It's the flip side of retention and one of the clearest signals of product-market fit — high churn quietly caps your growth no matter how many new customers you add.

The churn rate formula

• Churn rate = (Customers lost during period ÷ Customers at start of period) × 100
• Retention rate = 100% − Churn rate
• Avg. customer lifespan = 1 ÷ Churn rate (in the period's units)
• Revenue churn = (Recurring revenue lost ÷ Recurring revenue at start) × 100

Use the same window for "lost" and "at start." A 5% monthly churn means a very different business from 5% annual churn — this tool benchmarks you on a monthly-equivalent basis so the comparison is fair.

What's a good churn rate?

• Under 1% monthly — excellent, best-in-class retention.
• 1–3% monthly — healthy for most SaaS and subscription businesses.
• 3–5% monthly — elevated; worth investigating why customers leave.
• 5%+ monthly — high. This is a growth ceiling and should be your top priority.

Note: revenue churn can be lower than customer churn (if you keep bigger accounts) — and with expansion revenue it can even go negative, the gold standard for SaaS.

How to reduce churn

• Nail onboarding — most churn happens early, before customers see value.
• Catch at-risk accounts with usage signals and automated check-ins.
• Automate retention touchpoints — renewal reminders, health-check emails, win-back flows.
• Close the loop on cancellations — ask why, and fix the top reasons.

Frequently asked questions