Churn Rate Calculator – Measure Customer Retention
Free Churn Rate Calculator. Measure customer churn and retention to improve SaaS and subscription growth.
Churn Rate Calculator – Measure Customer Retention
Free Churn Rate Calculator. Measure customer churn and retention to improve SaaS and subscription growth.
Generated: 2/22/2026, 12:34:16 AM | AskSMB.io
Calculate Churn Rate
Inputs
Total customers at the beginning of the period
Number of customers who churned during the period
Time period for context (doesn't affect calculation)
Results
Customers at start must be greater than zero
How the Churn Rate Calculator Works
What is Churn Rate?
Churn rate, also known as customer attrition rate, measures the percentage of customers who stop using your product or service during a specific time period. It's one of the most critical metrics for subscription-based businesses, SaaS companies, and any business with recurring revenue. Churn rate directly impacts your growth potential, revenue stability, and company valuation. A high churn rate means you're losing customers faster than you can acquire them, which creates a "leaky bucket" effect where growth becomes nearly impossible.
Why Churn is Dangerous for Growth
- ⚠Revenue Erosion: Lost customers mean lost recurring revenue that's hard to replace
- ⚠Acquisition Treadmill: High churn forces you to constantly acquire new customers just to stay flat
- ⚠Reduced LTV: Customer lifetime value drops significantly with higher churn rates
- ⚠Growth Ceiling: Even with strong acquisition, high churn creates a mathematical limit to growth
- ⚠Valuation Impact: Investors heavily discount companies with poor retention metrics
Calculation Formula
Churn Rate = (Customers Lost / Customers at Start) × 100
Retention Rate = 100 - Churn Rate
Example Calculation
Churn Rate = (25 / 500) × 100 = 5%
Retention Rate = 100 - 5 = 95%
Churn vs Retention Explained
Churn rate and retention rate are two sides of the same coin — they always add up to 100%. If your churn rate is 5%, your retention rate is 95%. While mathematically equivalent, these metrics provide different psychological perspectives. Retention rate emphasizes the positive (customers who stayed), while churn rate highlights the negative (customers lost). Most successful companies track both: churn rate to identify problems quickly, and retention rate to celebrate improvements and align teams around keeping customers happy.
What is a Good Churn Rate?
"Good" churn rates vary significantly by industry, customer segment, and pricing model:
- ✓Enterprise SaaS: 2-3% monthly churn (excellent), 5-7% annual
- ✓SMB SaaS: 5-7% monthly churn (acceptable), 10-15% annual
- ✓Consumer Subscriptions: 5-10% monthly churn (varies widely)
- ✓E-commerce Subscriptions: 7-12% monthly churn (depends on product)
Generally, any monthly churn rate above 10% is a red flag that requires immediate attention. Below 5% is considered excellent for most SaaS businesses.
How to Reduce Customer Churn
- 1.Improve onboarding: Help customers achieve their first success quickly
- 2.Proactive support: Reach out before customers encounter problems
- 3.Regular check-ins: Build relationships through consistent communication
- 4.Product engagement: Monitor usage and re-engage inactive users
- 5.Customer feedback: Act on feedback to fix issues causing churn
- 6.Add value continuously: Ship features that increase product stickiness
- 7.Win-back campaigns: Offer incentives to churned customers to return
- 8.Analyze churn reasons: Understand why customers leave and address root causes
Frequently Asked Questions
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💡 Quick Tips
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