Free Tool

Churn Rate Calculator

Measure customer and revenue churn rates

Total customers at start of period
Total customers lost during the period
Monthly revenue at start of period in USD
Monthly revenue lost during the period in USD
Understanding

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

Customer Churn

The percentage of customers who cancel their subscription during a given period, measuring how well you retain your user base.

Revenue Churn

The percentage of recurring revenue lost due to cancellations and downgrades, which can differ from customer churn when customers have varying plan sizes.

Retention Rate

The inverse of churn rate, representing the percentage of customers or revenue retained over a period. Higher retention means healthier growth.

Formulas Used

Customer Churn Rate
Churn Rate = (Customers Lost ÷ Customers at Start) × 100

Divide the number of customers lost during the period by the number at the start, then multiply by 100 to get a percentage.

Revenue Churn
Revenue Churn = (Revenue Lost ÷ Revenue at Start) × 100

Divide the MRR lost from cancellations and downgrades by the starting MRR to measure the revenue impact of churn.

Retention Rate
Retention Rate = 100% − Customer Churn Rate

Subtract your churn rate from 100% to see what proportion of customers you successfully retained.

How it works

Three simple steps

01

Enter your customer data

Input starting customers, lost customers, and revenue figures for the period you want to measure.

02

Calculate churn rates

The calculator computes both customer churn rate and revenue churn rate for your specified time period.

03

Review the breakdown

See your gross churn, net churn, and how churn impacts your annualized revenue trajectory.

Use cases

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.

FAQ

Common questions

What is the churn rate formula?+
Customer Churn Rate = (Customers lost during period / Customers at start of period) x 100. Revenue Churn Rate = (MRR lost during period / MRR at start of period) x 100.
What is negative churn?+
Negative net revenue churn occurs when expansion revenue from existing customers exceeds churned revenue. This means your existing customer base is growing in value even without new sign-ups.
How often should I measure churn?+
Track churn monthly for operational decisions and quarterly or annually for strategic planning. Monthly measurements help you spot issues early, while longer periods smooth out noise.

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