Churn Rate Calculator – Customer Retention
Calculate monthly and annual churn rate, retention rate, and impact on MRR.
About This Calculator
Calculate monthly and annual churn rate, retention rate, and impact on MRR. Use the calculator above for instant results.
Worked Examples
- Churn: 5% | Retention: 95% | Annual churn: 46%
- MRR lost: $2,500/month
Answer: 5% monthly churn
- Churn: 1% | Retention: 99% | Annual: ~11.4%
Answer: 1% monthly churn
- Churn: 15% | Critical — business at risk
Answer: 15% — critical
Who Uses This Calculator?
Track subscription retention.
Monitor growth health KPI.
Evaluate business sustainability.
Set retention targets.
Common Mistakes to Avoid
❌ Monthly vs annual churn misinterpretation
5% monthly churn = 46% annual churn, not 60%. Annual churn = 1 - (1 - monthly churn)^12.
❌ Voluntary vs involuntary churn
Involuntary (failed payments): recover with dunning. Voluntary (cancellations): address with product and support improvements.
Frequently Asked Questions
Good churn rate?
SaaS: under 2%/month = excellent. 2-5% = acceptable. Above 5% = problematic. Enterprise SaaS should be under 1%.
Reduce churn?
Improve onboarding, proactive customer success, identify at-risk users early, reduce friction to use, address unmet needs.
Negative churn?
Expansion revenue from upsells exceeds lost revenue from churned customers. The ideal state: growing revenue from existing customers.