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Churn Rate Calculator
Calculate monthly and annual customer churn rate, MRR churn, and LTV impact. Results update in real time as you type.
Customer churn
MRR churn (optional)
Fill these to also calculate MRR churn rate and LTV estimate.
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Enter your starting customer count and customers lost above to see your churn rate.
What churn rate tells you
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Churn is the leaky bucket problem
If you lose 5% of customers each month, you need to acquire 5% net-new customers just to stay flat. Before optimising acquisition, reduce churn — every retained customer is a customer you don't need to re-acquire.
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Customer churn vs MRR churn diverge
You can have the same customer churn rate as a competitor but a much worse MRR churn rate if your churners are enterprise accounts. Always track both to understand where the real revenue risk lies.
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Annual churn compounds hard
A 5% monthly churn rate translates to ~46% annual churn — nearly half your customer base. The compound formula (1 − (1 − monthly)^12) always gives a much more sobering number than multiplying by 12.
Monthly churn benchmarks
< 1%
World-classSticky enterprise SaaS with high switching costs
1–2%
ExcellentStrong product-market fit and good onboarding
2–5%
AcceptableRoom to improve retention — prioritise at this stage
> 5%
Needs attentionCritical issue — growth is fighting a strong headwind
Frequently asked questions
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