What is a good churn rate?

For SaaS businesses, best-in-class is below 1% monthly (around 12% annually). Consumer subscription services typically see 5–10% monthly churn. Below 2% monthly is generally considered healthy for B2B.

How does churn affect customer lifetime value?

Average customer lifespan = 1 ÷ monthly churn rate. A 5% monthly churn gives an average lifespan of 20 months. LTV = monthly revenue × lifespan. Reducing churn by 1% can dramatically increase LTV.

What is the difference between gross and net churn?

Gross churn measures customers or revenue lost. Net churn accounts for expansion revenue (upsells) — you can have negative net churn if expansion revenue exceeds losses, even while losing some customers.

Churn Rate Calculator

Calculate your customer churn rate, retention rate, and the revenue impact of losing customers. Enter your starting customer count, customers lost, and average revenue per customer.

How it's calculated

Churn Rate = Customers Lost ÷ Customers at Start
Retention Rate = 1 − Churn Rate
Avg Lifespan = 1 ÷ Churn Rate (months)

Frequently Asked Questions

What is a good churn rate?: For SaaS businesses, best-in-class is below 1% monthly (around 12% annually). Consumer subscription services typically see 5–10% monthly churn. Below 2% monthly is generally considered healthy for B2B.
How does churn affect customer lifetime value?: Average customer lifespan = 1 ÷ monthly churn rate. A 5% monthly churn gives an average lifespan of 20 months. LTV = monthly revenue × lifespan. Reducing churn by 1% can dramatically increase LTV.
What is the difference between gross and net churn?: Gross churn measures customers or revenue lost. Net churn accounts for expansion revenue (upsells) — you can have negative net churn if expansion revenue exceeds losses, even while losing some customers.