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Churn Rate Calculator – Customer Retention %

Quick answer

Churn = lost customers ÷ starting customers × 100.

  • 38 lost of 950 = 4% monthly churn.
  • Revenue churn included.

Figures are estimates from this calculator’s standard formula — adjust the inputs in the tool below for your exact number.

How Churn Rate Is Calculated

Churn Rate = Customers Lost ÷ Customers at Start × 100

Churn counts the customers (or revenue) you lost in a period as a share of what you started with. Divide lost customers by the opening count and multiply by 100. Worked example: a subscription starting June with 950 customers that loses 38 by month-end churns 38 ÷ 950 = 4% monthly — which compounds to roughly 38.6% a year. Annualize carefully: 4% monthly is not 48% yearly but 1 − 0.96^12. Track logo churn and revenue churn separately, because losing two big accounts can outweigh twenty small ones.

  1. 1

    Enter starting customers

    The count at the beginning of the month or year.

  2. 2

    Enter customers lost

    Cancellations and non-renewals only.

  3. 3

    Read churn %

    The tool also shows the implied retention rate.

Use Cases

Retention experiments

Measure if the new onboarding flow actually moved churn.

Segment health

Track churn per plan or cohort to find leaking tiers.

Valuation input

Churn directly drives LTV and therefore company valuation multiples.

Common Mistakes

  • Putting new signups in the denominator, understating churn

  • Multiplying monthly churn by 12 for an annual figure

  • Averaging churn across wildly different customer segments

FAQs

What is an acceptable churn rate?

Under 3% monthly (about 30% yearly) is decent for SMB SaaS; enterprise targets sit near 1%.

Logo churn vs revenue churn?

Logo counts customers lost; revenue counts dollars lost — a lost enterprise account can dominate revenue churn.

How do I convert monthly to annual?

Annual ≈ 1 − (1 − monthly)^12, not monthly × 12, because losses compound.

Should new signups count?

No — divide only by the opening base; mixing new customers into the denominator understates churn.