Tiny Toolkit

Churn Rate Calculator

Calculate your monthly or annual customer churn rate, the corresponding retention rate, and the impact of churn on your revenue. Enter the number of customers at the start of a period and how many churned during it. Reducing churn by even a few percentage points has an outsized compounding effect on growth — this tool makes that relationship visible.

All processing happens in your browser. No data is sent to any server.

Frequently Asked Questions

What is a good monthly churn rate for a SaaS business?
World-class SaaS companies target monthly churn below 0.5% to 1%. A 2% monthly rate sounds small but compounds to about 22% annual churn, meaning you lose roughly 1 in 5 customers per year. Early-stage companies often see 5 to 8% monthly churn as they find product-market fit.
How does monthly churn translate to annual churn?
Annual churn is not simply 12 times the monthly rate. The correct formula is: Annual Churn = 1 - (1 - monthly churn)^12. At 2% monthly churn, annual churn is about 21.5%, not 24%.
What is average customer lifetime?
Average customer lifetime = 1 / churn rate (expressed as a decimal). At 3% monthly churn, the average customer stays for about 33 months (approximately 2.8 years). This is also the basis for calculating LTV: LTV = ARPU x average lifetime.
What is the difference between customer churn and revenue churn?
Customer churn counts the percentage of customers lost. Revenue churn (also called MRR churn) measures the percentage of revenue lost. If high-value customers churn at higher rates, revenue churn can be much worse than customer churn, and vice versa.

Related Tools

Burn Rate & Runway Calculator for Startups

New

Calculate your monthly burn rate, net burn, and cash runway in months. See when you'll run out of money and how much you need to raise to hit a target runway. Free.

Ad Spend ROI Calculator — ROAS & Profit

New

Calculate the profit or loss on your ad campaigns. Enter spend, CPC, conversion rate, average order value, and gross margin to see ROAS, ROI, CAC, and break-even thresholds. Free.

Conversion Rate Calculator — CVR & Revenue Impact

New

Calculate your conversion rate from visitors and conversions, see total value and value per visitor, and model the revenue impact of improving your CVR by 10%, 25%, 50%, or 100%. Free.

Related Articles

What Is Churn Rate and How Do You Calculate It?

Churn rate measures how quickly you lose customers. Even a small difference in monthly churn leads to dramatically different outcomes over time. Here's the formula and what it implies.

5 min read

What Is MRR and ARR? A Plain-English Guide

MRR and ARR are the two most cited revenue metrics in subscription businesses. Here's what they measure, how to calculate them correctly, and the four components that drive MRR changes.

5 min read

What Is Customer Lifetime Value (LTV)?

LTV defines how much you can rationally spend to acquire a customer. Here's the formula, how to use the LTV:CAC ratio, and the levers that move LTV over time.

5 min read