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Churn rate calculator.

Get customer churn, retention and revenue churn from one set of numbers, converted between months, quarters and years the right way: compounded, not divided.

Free · Runs in your browser · Formulas shown

Your customers

Leave out customers who joined during the period.

Period

Revenue churn (optional)

$
$

From customers who cancelled.

$

From downgrades.

$

From upgrades and added seats.

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Customer churn per month

3%

Typical for SMB SaaS.

Retention
97%
Annual churncompounded
30.6%
Average customer lifetime
33.3 months
Gross MRR churn
4%
Net MRR churnnegative churn
-0.5%
Gross revenue retention
96%
Net revenue retention
100.5%
The math

How churn rate is calculated.

Churn is a share of what you had at the start of the period. The examples use your numbers from the calculator above.
Customer churn per month

Customer churn = customers lost ÷ customers at start

12 ÷ 400 = 3%

An average customer stays 33.3 months.

Annual churn, compounded

Annual churn = 1 − (1 − monthly churn) to the power of 12

1 − (1 − 3%)¹² = 30.6%

Not 36%: each month's churn applies to fewer customers.

Gross MRR churn

Gross MRR churn = (churned MRR + contraction MRR) ÷ starting MRR

($600 + $200) ÷ $20,000 = 4%

After $900 of expansion, net MRR churn is -0.5%.

Net revenue retention

NRR = (starting MRR + expansion − contraction − churned) ÷ starting MRR

($20,000 + $900 − $200 − $600) ÷ $20,000 = 100.5%

Above 100% means existing customers grow revenue on their own.

Here net MRR churn is negative: upgrades outweighed the revenue lost, even though 12 customers left. That is why investors ask for both numbers.

Monthly churn is not annual churn divided by 12.

Each month's churn applies to the customers who are left, so rates compound. Multiplying monthly churn by 12 overstates annual churn, and dividing annual churn by 12 understates monthly churn.
Monthly churn converted to annual churn and average lifetime
Monthly churnAnnual churnMonthly × 12 (wrong)Average lifetime
1%11.4%12%100 months
2%21.5%24%50 months
3%30.6%36%33 months
5%46%60%20 months
7%58.1%84%14 months
10%71.8%120%10 months
Benchmarks

What good looks like.

Retention benchmarks from published SaaS surveys. Churn varies widely with price point and customer size.
SaaS benchmarks and their sources
MetricBenchmarkSource
Net revenue retentionMedian 101%Benchmarkit 2025 SaaS benchmarks
Gross revenue retentionMedian 88% (Benchmarkit), 91% for private B2B (SaaS Capital)Benchmarkit 2025 SaaS benchmarks
NRR above 100%41% of companies with ARPA over $500/mo, 3% under $10/moChartMogul retention benchmarks

Next step: turn churn into a dollar figure with the LTV calculator, or track the revenue side month by month with the MRR calculator.

FAQ

Churn questions.

How do you calculate churn rate?

Divide the customers you lost during a period by the customers you had at its start. Losing 12 of 400 customers in a month is 3% monthly churn. Don't count customers who signed up during the month in either number.

What is a good churn rate for a SaaS company?

It depends on who you sell to. As a rough guide, under 2% a month is strong for SMB and mid-market SaaS, 2–5% is typical for SMB, and enterprise products aim for under 1%. Lower prices usually churn faster.

What is the difference between customer churn and revenue churn?

Customer churn counts accounts that cancel. Revenue churn measures the MRR lost to cancellations and downgrades. They diverge when customers pay different amounts: losing one large account is 1 customer but a lot of revenue.

What is the difference between gross and net MRR churn?

Gross MRR churn is cancelled plus downgraded MRR, divided by starting MRR. Net MRR churn subtracts expansion revenue from upgrades, so it can go below zero.

What is negative churn?

Net MRR churn below zero: upgrades from existing customers add more revenue than cancellations and downgrades remove. It means revenue grows even with no new customers, and it shows up as net revenue retention above 100%.

How do I convert monthly churn to annual churn?

Compound it: annual = 1 − (1 − monthly)^12. 3% a month is 30.6% a year, not 36%, because each month's churn applies to fewer remaining customers.

What is net revenue retention?

The share of last period's revenue you still have from the same customers, including upgrades and downgrades. Benchmarkit's 2025 survey puts the median at 101%.

How does churn affect customer lifetime value?

Average customer lifetime is 1 / monthly churn, so halving churn doubles lifetime and doubles LTV. The LTV calculator takes your churn and turns it into lifetime value.

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