Churn Rate Calculator
Enter customers at the start of the month and customers lost to get your monthly churn rate, retention rate, and the properly compounded annualized churn figure.
Reviewed by the CalcCafe editorial team · Last updated 18 July 2026 · How we test our tools
Example
Start the month with 1,000 customers and lose 25 of them. Monthly churn = 25 ÷ 1,000 = 2.5%, so monthly retention is 97.5%. Annualized properly, churn is 1 − 0.975¹² = 26.2% — noticeably less than the naive 2.5 × 12 = 30%, because each month’s churn applies to an already-smaller base.
How it works
Monthly churn % = customers lost ÷ customers at start of month × 100. Retention % = 100 − churn %. Annualized churn compounds the monthly survival rate: annual churn % = (1 − (1 − monthly churn)¹²) × 100. Compounding matters because each month’s losses come from a smaller remaining base, so annualized churn is always below monthly churn × 12. Exclude customers acquired mid-month from the lost count, or you will overstate churn.
Good to know
This tool measures customer churn (logo churn) — the share of customers who cancel. Revenue churn, measured on MRR, can tell a very different story: losing 25 small accounts out of 1,000 is 2.5% logo churn, but if those were your smallest customers it might be under 1% of MRR. Conversely, losing two enterprise accounts can be negligible logo churn and devastating revenue churn. Track both, and be explicit about which one you quote — investors will ask.
Annualizing churn is where most founders slip. 2.5% monthly churn is not 30% annual churn; compounding the 97.5% monthly survival rate gives 1 − 0.975¹² ≈ 26.2%. The gap widens with higher churn: 5% monthly compounds to about 46% annually, not 60%. The same subtlety works in reverse — a target of 10% annual churn requires monthly churn of roughly 0.87%, not 0.83%. Always compound; never multiply by 12.
Best-in-class SaaS companies push net revenue churn negative: expansion revenue from upgrades, seat growth and cross-sell exceeds revenue lost to cancellations and downgrades, so existing cohorts grow without any new sales. Public SaaS leaders routinely report net revenue retention of 110-130%. Negative net churn is arguably the single strongest signal of product-market fit in a B2B business, because revenue compounds even if new-customer acquisition stalls.
Benchmarks depend heavily on segment. SMB-focused SaaS typically sees 3-7% monthly customer churn — small businesses fail and switch tools often — while mid-market runs 1-2% and enterprise SaaS is measured in low single digits annually (95%+ gross revenue retention). Consumer subscriptions often exceed all of these. So compare against your own segment, and watch the trend by cohort: flat or declining churn as cohorts age is healthy; rising churn in older cohorts is a product problem no marketing budget can fix.
Frequently asked questions
What is the difference between customer churn and revenue churn?
Customer (logo) churn counts cancelled accounts; revenue (MRR) churn counts the money they represented. They diverge whenever account sizes vary: losing many tiny accounts inflates logo churn but barely dents MRR, while losing one large account does the opposite. Report both.
Why is annualized churn not just monthly churn times 12?
Because churn compounds on a shrinking base. With 2.5% monthly churn, 97.5% of customers survive each month, and 0.975 to the 12th power leaves 73.8% after a year — 26.2% annual churn, not 30%. The higher the monthly rate, the bigger the gap.
What is a good monthly churn rate for SaaS?
It depends on segment: SMB SaaS commonly runs 3-7% monthly, mid-market 1-2%, and enterprise SaaS is usually quoted annually at 5% or less. The strongest companies achieve negative net revenue churn, where expansion revenue outweighs losses.
Is my data uploaded anywhere?
No — this calculator runs entirely in your browser. Your customer counts never leave your device, and the page works offline once loaded.
People also ask
How do I calculate churn rate?
Divide customers lost during the period by customers at the start of the period and multiply by 100. Losing 25 of 1,000 customers in a month is a 2.5% monthly churn rate. Do not count customers acquired during the same period in the starting base.
What does negative churn mean?
Negative net revenue churn means expansion revenue from existing customers (upgrades, added seats, cross-sell) exceeds the revenue lost to cancellations and downgrades. The customer base grows in revenue terms even with zero new sales — a hallmark of strong product-market fit.
What annual churn does 2.5% monthly churn equal?
About 26.2%. Compound the survival rate: 97.5% retained each month for 12 months leaves 0.975^12 = 73.8% of customers, so 26.2% churned — less than the naive 30% you get by multiplying by 12.
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Sources & references
These tools follow our methodology and provide educational estimates only — verify important figures with a qualified professional.