Churn Rate Calculator
Measure customer and revenue churn rates
What is Churn Rate?
Churn rate measures the percentage of customers or revenue lost over a given period. It is one of the most critical SaaS metrics because even small differences in churn compound dramatically over time, directly impacting long-term growth and company valuation.
Key Terms
The percentage of customers who cancel their subscription during a given period, measuring how well you retain your user base.
The percentage of recurring revenue lost due to cancellations and downgrades, which can differ from customer churn when customers have varying plan sizes.
The inverse of churn rate, representing the percentage of customers or revenue retained over a period. Higher retention means healthier growth.
Formulas Used
Divide the number of customers lost during the period by the number at the start, then multiply by 100 to get a percentage.
Divide the MRR lost from cancellations and downgrades by the starting MRR to measure the revenue impact of churn.
Subtract your churn rate from 100% to see what proportion of customers you successfully retained.
Three simple steps
Enter your customer data
Input starting customers, lost customers, and revenue figures for the period you want to measure.
Calculate churn rates
The calculator computes both customer churn rate and revenue churn rate for your specified time period.
Review the breakdown
See your gross churn, net churn, and how churn impacts your annualized revenue trajectory.
Built for founders like you
Retention teams
Quantify the impact of churn and set data-driven retention targets.
Board reporting
Present clear churn metrics alongside growth numbers for a complete picture of business health.
Pricing strategy
Evaluate whether pricing changes are increasing or decreasing customer churn over time.
Why churn rate matters for SaaS
Churn rate measures the percentage of customers or revenue lost over a given period. Even small differences in churn compound dramatically over time — a 5% monthly churn means you lose nearly half your customers every year.
There are two types of churn to track: customer churn (the percentage of customers who cancel) and revenue churn (the percentage of recurring revenue lost). Revenue churn can be negative if expansion revenue from existing customers exceeds lost revenue — a sign of a very healthy business.
Best-in-class SaaS companies target annual customer churn below 5-7%. If your churn is higher, focus on understanding why customers leave through exit surveys, cohort analysis, and customer health scoring.
Common questions
What is the churn rate formula?+
What is negative churn?+
How often should I measure churn?+
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