Churn Rate Calculator
Calculate monthly customer churn and retention, the equivalent annual churn, and the average customer lifetime.
How to use
- 1Enter customers at the start of the month and how many cancelled.
- 2See monthly churn, annualized churn and the average lifetime.
How it's calculated
Monthly churn = customers lost ÷ customers at start. Annual churn = 1 − (1 − monthly)^12. Average lifetime ≈ 1 ÷ monthly churn (months).
Frequently asked questions
Why isn't annual churn 12 × monthly?
Churn compounds on a shrinking base. 5% monthly churn is about 46% annual churn, not 60%.
What's a good churn rate?
For SaaS selling to businesses, 1–2% monthly is often cited as healthy; consumer subscriptions frequently see 5–10%.
Should new customers count?
Use customers at the start of the period so new sign-ups during the month don't hide cancellations.