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Churn Rate Calculator - Customer Retention

Calculate customer and revenue churn rate. Measure subscription retention and MRR loss. For SaaS businesses and subscription services.

Input Values

Enter your customer data to calculate churn rate.

Churn Analysis

Your calculated churn rates and retention metrics.

Customer Churn Rate

-

Summary:

Customers at Beginning: -
Customers Lost: -

Time to Lose Entire Customer Base:

At the current churn rate, it would take:
- (or - / -)

Frequently Asked Questions

We've compiled the answers to the most common questions below. If your question isn't covered, or you need more info, or have feedback, please contact us.

What is churn rate?

Churn rate is the percentage of customers who stop using your product or service during a specific time period. It's a critical metric for subscription businesses, SaaS companies, and any business with recurring revenue. Customer churn rate measures the number of customers lost, while revenue churn rate measures the monthly recurring revenue (MRR) lost. High churn rates indicate problems with product-market fit, customer satisfaction, or pricing.

How do you calculate churn rate?

Customer churn rate is calculated as: (Customers Lost During Period / Customers at Beginning of Period) × 100. For example, if you started with 123 customers and lost 11, your churn rate is 8.94%. Revenue churn rate uses the same formula but with MRR values: (MRR Lost / MRR at Beginning) × 100. Always measure churn over consistent time periods, typically monthly or annually.

What is a good churn rate for SaaS?

For SaaS businesses, a good monthly churn rate is typically 5-7% or lower. Annual churn rates should be under 10% for healthy SaaS companies. Enterprise SaaS companies often achieve 5% annual churn or less, while consumer SaaS may see 5-7% monthly churn. B2B companies generally have lower churn than B2C. If your churn rate is above 10% monthly, focus on improving customer success, product value, and onboarding.

What's the difference between customer churn and revenue churn?

Customer churn measures the percentage of customers who cancel, while revenue churn measures the percentage of recurring revenue lost. These can differ significantly. For example, if you lose 10% of customers but they were your lowest-paying customers, your customer churn is 10% but revenue churn might only be 5%. Revenue churn is often more important for business health, as losing high-value customers impacts your bottom line more than losing low-value customers.

What is MRR for startups?

MRR (Monthly Recurring Revenue) is the predictable revenue a subscription business expects to receive every month. It's calculated by multiplying the number of paying customers by the average revenue per customer per month. For example, if you have 100 customers paying $50/month, your MRR is $5,000. MRR is a critical metric for SaaS startups and subscription businesses because it provides a clear picture of business health, growth trajectory, and revenue predictability. Tracking MRR alongside churn rate helps startups understand both revenue growth and customer retention.

How can I reduce customer churn?

To reduce churn, focus on customer success programs, proactive support, regular product improvements, and clear value demonstration. Implement onboarding programs to ensure customers achieve early wins. Use customer feedback to identify pain points. Offer flexible pricing and contracts. Monitor usage patterns to identify at-risk customers before they churn. Track your churn rate monthly with this calculator to measure the impact of your retention efforts and identify trends early.

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