🚀 SaaS Metrics

Churn Rate Calculator

Calculate customer and revenue churn rate. Free monthly and annual churn rate calculator for SaaS.

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What This Calculator Tells You

Churn rate is the share of customers who cancel or stop paying in a given period. For a subscription business it is the leak in the bucket: every customer you lose has to be replaced before you can grow at all.

This calculator takes the customers you started the month with and how many you lost, then shows monthly churn, what that rate compounds to over a year, and the matching annual retention.

What to Enter

Customers at start of month — paying customers on day one of the period. Do not include free-trial or freemium users unless you also count them when they leave.
Customers lost during month — customers who cancelled, did not renew or failed payment and were not recovered. Leave out customers who signed up and cancelled inside the same month; they were never in your starting count.

Worked Examples

1. An early-stage B2B SaaS

A project-management tool starts March with 500 paying teams and loses 15.

Enter 500 and 15 → monthly churn 3.00%.
Annualized churn is about 30.6%, not 36% — losses compound on a shrinking base, so you cannot simply multiply by 12.

2. A consumer subscription box

A meal-kit brand starts the month with 12,000 subscribers and 1,080 cancel.

Enter 12,000 and 1,080 → monthly churn 9.00%.
That compounds to roughly 67.7% a year — about two in three subscribers gone within twelve months, which is common for consumer boxes and why they spend heavily on acquisition.

3. An enterprise contract book

A data platform with 80 annual-contract customers loses 1 in a month.

Enter 80 and 1 → monthly churn 1.25%, about 14% annualized.
With so few customers a single loss swings the number; look at a rolling 3- or 12-month figure instead of one month.

How It’s Calculated

Customer Churn = (Customers Lost ÷ Customers at Start) × 100. Revenue Churn = (MRR Lost ÷ MRR at Start) × 100.

MRR: Monthly Recurring Revenue

How to Read Your Result

Under 2% a month is strong for SMB SaaS; enterprise products often run below 1%.
3–5% a month is typical for self-serve SMB tools and means you replace roughly a third to half of your customers each year.
Above 7–8% a month usually points to a product-fit, onboarding or pricing problem rather than a marketing one.
Next step: turn churn into revenue impact with the LTV calculator — average customer lifetime is roughly 1 ÷ monthly churn.

Common Mistakes to Avoid

Multiplying monthly churn by 12. 3% a month is about 30.6% a year, not 36%.
Counting new customers in the denominator. Customers added mid-month inflate the base and hide churn; use the starting count only.
Mixing customer churn and revenue churn. Losing ten small accounts and losing one large one are very different; track revenue (MRR) churn separately.
Reading one month in isolation. Seasonality and annual-renewal cycles create spikes; compare like-for-like periods.

Built and maintained by GenAlpha Tools Editorial. Uses the standard published formula shown above. How we calculate · Report an error

When to Use This Calculator

Spot whether a pricing or onboarding change reduced cancellations.
Feed a realistic churn figure into LTV, payback and runway models.
Benchmark plans or customer segments against each other.
Report churn to investors with the annualized figure they expect.

Frequently Asked Questions

What is a good monthly churn rate for SaaS?

It depends on who you sell to. Products for small businesses commonly see 3–7% monthly customer churn, mid-market 1–2%, and enterprise well under 1%. The trend matters more than any single benchmark.

How do I convert monthly churn to annual churn?

Annual churn = 1 − (1 − monthly churn)12. At 3% monthly that is 1 − 0.9712 ≈ 30.6%. The calculator does this for you.

What is the difference between churn rate and retention rate?

For a fixed starting group they are mirror images: retention = 100% − churn. Retention rate calculations that include new customers are different; use the customer retention rate calculator for that version.

Should I count failed payments as churn?

Yes, once dunning has finished and the payment is not recovered. Involuntary churn from expired cards is often 20–40% of total churn and is one of the cheapest kinds to fix.

Do you store the values I enter?

No. All calculations happen in your browser. Your data never leaves your device.

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