What Is a Churn Rate Calculator?
A churn rate calculator measures the percentage of customers who stop using your product or service during a given period. Understanding churn is critical for subscription businesses, SaaS companies, and any business that depends on recurring revenue. Reducing churn by even a small percentage can have a dramatic impact on long-term profitability.
How to Use This Churn Rate Calculator
- Enter the number of customers you had at the beginning of the period.
- Enter the number of customers lost (churned) during that period.
- Click “Calculate” to see the churn rate and retention rate.
Churn Rate vs. Retention Rate
Churn rate and retention rate are two sides of the same coin. Churn Rate = (Customers Lost ÷ Customers at Start) × 100. Retention Rate = 100% − Churn Rate. A 5% monthly churn means you retain 95% of customers each month, but compounded over a year, you would lose about 46% of your customer base.
Churn Rate = (Lost ÷ Start) × 100
Frequently Asked Questions
What is a good churn rate?
For SaaS businesses, a monthly churn rate of 3–5% is common for SMBs, while enterprise SaaS targets under 1%. For consumer subscriptions, benchmarks vary widely by industry.
How can I reduce churn?
Focus on onboarding, customer success, regular engagement, and gathering feedback. Understanding why customers leave is the first step to reducing churn.