Profession Calculators
SaaS & Digital BusinessPopular

Churn Rate Calculator

Calculate customer and revenue churn rates, net revenue churn, average customer lifespan, and lifetime value with 2026 SaaS benchmarks by segment.

Period Data

Customer Counts (Monthly)

Revenue Data (Monthly)

For LTV calculation. Defaults to MRR / customers.

Churn Analysis

Enter customer and revenue data, then click calculate.

What This Calculator Does

This churn rate calculator computes both customer churn (percentage of customers lost) and revenue churn (percentage of MRR lost) for a given period. It also calculates net revenue churn (accounting for expansion), average customer lifespan, retention rate, and customer lifetime value (LTV) with 2026 SaaS benchmarks.

The Formula

Customer Churn Rate = (Customers Lost / Start Customers) x 100 | Revenue Churn = (Lost MRR / Start MRR) x 100 | Net Revenue Churn = ((Lost MRR - Expansion MRR) / Start MRR) x 100

Customer churn measures how many customers cancel. Revenue churn measures how much MRR is lost. Net revenue churn accounts for expansion revenue from remaining customers. If expansion exceeds losses, net revenue churn is negative, which is the gold standard for SaaS. Average customer lifespan is the inverse of monthly churn rate.

Step-by-Step Example

1

Enter customer data

Start: 500 customers. New: 50. End: 520. Customers lost: 30 (6% monthly churn).

2

Enter revenue data

Start MRR: $50,000. Lost MRR: $3,000. Expansion MRR: $1,500.

3

Calculate churn rates

Customer churn: 6.0%. Gross revenue churn: 6.0%. Net revenue churn: 3.0%. Annual churn: 52.9%.

4

Derive LTV and lifespan

Average lifespan: 16.7 months. LTV at $100 ARPU: $1,667.

Real-World Use Cases

Retention Strategy Evaluation

Track churn month over month to measure the impact of retention initiatives, product improvements, and customer success programs.

Business Health Assessment

Compare your churn rates against industry benchmarks to identify whether retention is a critical issue.

LTV:CAC Analysis

Use the LTV derived from churn to evaluate whether your customer acquisition cost is sustainable.

Common Mistakes to Avoid

  • Only measuring customer churn and ignoring revenue churn. Losing 10 customers at $50/month is very different from losing 10 customers at $500/month.

  • Not distinguishing between voluntary and involuntary churn. Involuntary churn (failed payments) is often 20% to 40% of total churn and can be reduced with dunning processes.

  • Comparing monthly churn to annual benchmarks. A 5% monthly churn rate compounds to 46% annual churn, not 60% (which would be 5% x 12).

  • Measuring churn over too short a period. One month of data can be misleading. Track 3-month rolling averages for more reliable trends.

Frequently Asked Questions

Accuracy and Disclaimer

Churn calculations are based on the data you provide. Benchmarks vary by business model, customer segment, pricing, and market conditions. Track churn consistently over time for the most actionable insights.