Customer Churn Rate Calculator
Assess customer attrition and retention health. Calculate customer churn rate percentage across any monthly, quarterly, or annual period to measure subscriber retention, quantify customer dissatisfaction, and project average customer lifetime duration.
Total active paying subscribers at beginning of examined period
Subscribers who cancelled or failed to renew during the period
Percentage of customer base lost during the examined period
How to Use This Calculator
- Enter total active customers or subscribers at the beginning of the period.
- Enter number of those customers who cancelled during that period (exclude new acquisitions).
- Review monthly or annual churn rate percentage.
- Check implied customer lifespan to evaluate customer lifetime value sustainability.
Formula & Calculation Methodology
Divides cancelled customers by starting subscriber count, from which implied customer relationship duration is derived.
Worked Example
1,000 subscribers at start of month with 45 cancellations
Frequently Asked Questions
What is a good benchmark monthly churn rate for SaaS businesses?↓
For B2B enterprise SaaS, monthly churn should remain below 0.5% to 1.0% (5% to 10% annually). For consumer self-serve B2C subscriptions, monthly churn typically ranges between 3% and 6%.
Why are newly acquired customers excluded from the churn denominator?↓
Customers acquired during the period did not exist at the start. Including them in the denominator artificially dilutes the churn rate and masks underlying customer attrition.
What is the difference between customer churn and revenue churn?↓
Customer churn measures the percentage of logo accounts lost. Revenue churn (or Net Revenue Retention) measures the percentage of dollar recurring revenue lost after factoring in expansions and upsells.
What is negative net revenue churn?↓
Negative churn occurs when expansion revenue and seat upgrades from retained customers exceed the dollar revenue lost from churned accounts, causing revenue to grow without acquiring new logos.
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Source Citation & Disclaimer
Informational tool only; not licensed tax, legal, or financial advice.