Calculate customer churn, revenue churn, and net revenue retention (NRR) with industry benchmarks. Free tool for SaaS, subscription, and recurring revenue businesses.
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Churn rate measures the percentage of customers or revenue lost over a specific period. For SaaS and subscription businesses, churn is a critical metric that directly impacts growth, valuation, and customer lifetime value. Our Churn Rate Calculator supports customer churn, gross revenue churn, and net revenue churn calculations with industry benchmarks and cohort analysis.
Churn rate quantifies customer or revenue loss as a percentage. Customer churn measures the percentage of customers who cancel, while revenue churn measures the percentage of recurring revenue lost. Net revenue churn accounts for expansion revenue, which can result in negative churn—meaning existing customers generate more revenue than is lost to cancellations.
Churn Rate Formulas
Customer Churn Rate = (Lost Customers ÷ Starting Customers) × 100%
Gross Revenue Churn = (Lost MRR + Contraction MRR) ÷ Starting MRR × 100%
Net Revenue Churn = (Lost MRR + Contraction - Expansion) ÷ Starting MRR × 100%
Net Revenue Retention (NRR) = 100% - Net Churn RateChurn directly impacts your growth rate. With 5% monthly churn, you lose ~46% of customers annually, requiring massive acquisition to grow.
Low churn (<2% monthly) can add 1-3x to your valuation multiple. High churn (>5%) is a red flag that discounts valuations.
Customer lifetime = 1 ÷ Churn Rate. With 2% monthly churn, average lifetime is 50 months; with 5% churn, only 20 months.
Know if your churn is competitive. Enterprise SaaS averages <1% monthly; SMB SaaS averages 3-5%; Consumer apps can exceed 7%.
High churn signals product, support, or market fit issues. Tracking churn by cohort helps identify when and why customers leave.
Higher churn requires more aggressive customer acquisition spending. Calculate how many new customers you need to offset churn.
Best-in-class SaaS companies achieve negative net churn (NRR >100%), meaning expansion revenue exceeds lost revenue.
Track churn monthly to catch problems early. Compare against previous periods and set improvement targets.
Investors expect churn metrics in board decks and data rooms. Calculate gross and net churn with industry context.
Sub-2% monthly churn is expected for Series B+. Calculate your metrics and identify improvements before fundraising.
High early cohort churn suggests PMF issues. Use cohort analysis to identify when customers leave and why.
Calculate churn by segment to prioritize customer success resources on high-value, high-risk accounts.
Compare churn across pricing tiers. Higher churn on lower tiers may indicate need for pricing changes.
Good monthly churn varies by segment: Enterprise SaaS (<1% monthly, <10% annual), SMB SaaS (2-3% monthly, 20-30% annual), Consumer SaaS (4-6% monthly, 40-50% annual). Best-in-class companies achieve <1% monthly regardless of segment. Annual churn under 5% is considered excellent for enterprise.