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 StartRetention Rate = 1 − Churn RateAvg Lifespan = 1 ÷ Churn Rate (months)
Frequently Asked Questions
- What is a good churn rate?
- It varies sharply by model. For SaaS, best-in-class is below 1% monthly, roughly 12% a year. Below 2% monthly is generally considered healthy for B2B. Consumer subscription services typically run much higher, at 5–10% monthly, because switching costs are low. Compare against your own segment. A consumer app at 6% is doing fine; a B2B platform at 6% has a serious problem.
- How does churn affect customer lifetime value?
- Churn sets how long customers stay, and lifespan drives lifetime value. Average lifespan is 1 divided by your monthly churn rate. At 5% monthly churn, the average customer stays 20 months. LTV is then monthly revenue multiplied by that lifespan. This is why small churn changes matter so much: cutting churn from 5% to 4% extends average lifespan from 20 months to 25, lifting LTV by a quarter without winning a single new customer.
- What is the difference between gross and net churn?
- Gross churn counts what you lost — customers or revenue. Net churn subtracts expansion revenue from upsells and upgrades. The difference can be dramatic. If your existing customers spend enough more to outweigh what you lost, net churn goes negative, meaning revenue grows from the existing base alone even while some customers leave. Track both. Gross churn tells you about retention; net churn tells you about growth.