Churn Rate Calculator
Calculate your SaaS churn rate, annualized churn, revenue lost to churn, and net revenue retention. Free churn rate calculator with formula and examples.
Inputs
Enter the minimum numbers needed to get a result.
Formula and example
Churn Rate = Lost Customers / Starting Customers × 100; Annual = 1 - (1 - Monthly Churn)^12; Revenue Lost = Lost × Avg Rev; Net Change = New - Lost; NRR = 1 - (Revenue Lost / (Starting × Avg Rev))
With 1,000 customers at month start, 50 lost, $100 avg revenue, and 80 new customers: monthly churn is 5%, annualized churn is 46%, revenue lost is $5,000, net change is +30, and NRR is 95%.
Methodology & assumptions
Last updated: 2026-06-25Calculation method
Calculates monthly churn rate by dividing lost customers by starting customers. Annualized churn uses compound probability: 1 - (1 - monthly churn rate)^12. Revenue lost multiplies churned customers by average revenue per customer. Net revenue retention accounts for expansion revenue from new customers relative to total starting revenue.
Data sources
Uses the numbers you enter and standard small-business finance formulas. Benchmark comparisons use HustleFin industry benchmark pages where available.
Limitations
Assumes lost customers have the same average revenue as the overall base. Does not distinguish between voluntary and involuntary churn, or segment churn by customer cohort. Best used as a high-level health metric — supplement with cohort retention curves for deeper analysis.
Input definitions
- Customers at start of month: Total active customers at the beginning of the month.
- Customers lost this month: Customers who canceled or churned during the month.
- Avg monthly revenue per customer: Average revenue generated per customer each month.
- New customers added this month: New customers acquired during the month.
Frequently asked questions
What is a good churn rate for SaaS?+
3-5% monthly for SMB SaaS is typical. Enterprise SaaS targets <1-2% monthly. Below 2% monthly is excellent.
What's the difference between logo churn and revenue churn?+
Logo churn counts customers. Revenue churn counts dollars lost. If you lose small accounts but keep big ones, logo churn looks worse than revenue churn.
How do I reduce churn?+
Three highest-leverage fixes: improve onboarding (first 7 days), add a win-back email sequence for cancellations, and survey canceling users to find the real reason.
Why does 5% monthly churn annualize to 46%?+
Because churn compounds: after 12 months at 5%/month, you've lost 1-(0.95)^12 = 46% of your original base.
Related guides
Go deeper with in-depth guides on the concepts behind this calculator.
Continue the workflow
Estimate margin, convert margin to markup, then check the sales volume needed to break even.