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Churn Rate Calculator

Calculate customer and revenue churn — monthly & annualized.

Customer movement

live

Churn analysis

Monthly Churn

%

Annual churn

%

Retention

%

Industry benchmark

0%2.5%5%10%+

Health

How to use this calculator

  1. Enter the customers (or MRR) at the start of a representative month.
  2. Enter the number that cancelled during that month — exclude new signups.
  3. Pick your industry to compare against published peer benchmarks.
  4. Use the annual figure for long-range forecasts; use the monthly figure for week-over-week tracking.

Calculation method

Monthly Churn % = Lost / Start x 100

Annual Churn % = (1 - (1 - m/100)^12) x 100

Retention % = 100 - Monthly Churn

Annual churn uses compound math, not 12x monthly. The two diverge significantly above 5% monthly churn.

Frequently Asked Questions

Monthly churn rate is the percent of customers (or revenue) you lose during a single month. Formula: (Customers Lost / Customers at Start) x 100. It is the single most-watched health metric in subscription businesses.
Customer (logo) churn counts the number of accounts that cancel. Revenue churn counts the dollars lost. They diverge: if your smallest customers leave, logo churn can be 5% while revenue churn is only 1%. Track both; revenue churn matters more for forecasting.
Because the customer pool shrinks each month. If you lose 2% per month, you keep 98% — but next month you lose 2% of that smaller pool. The compounded annual figure is 1 - 0.98^12 = ~21.5%, not 24%. Always use the compounding formula for annual.
SMB SaaS typically sees 3-7% monthly churn — significantly higher than Enterprise (0.5-1%) because SMB customers are more price-sensitive and have shorter business lifecycles. Best-in-class SMB tools land below 3%.
In order of impact: (1) Fix the activation moment so new users immediately experience value, (2) Identify at-risk accounts via usage drop-off and intervene proactively, (3) Capture cancellation reasons and close the top 3 root causes per quarter, (4) Push annual plans which reduce monthly cancellation surface area.

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LTV:CAC Ratio Calculator

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MRR / ARR Projection Calculator

Project MRR/ARR over 6-36 months with growth + churn assumptions.

Business & SaaS Disclaimer

Calculations are estimates for educational purposes. Single-month churn can be noisy; benchmark using trailing 3-6 month averages. SaaSCalcHub is not business or financial advice. Consult business advisors, CPAs, and consultants for your specific situation.

Last updated: May 26, 2026