What's a good churn rate?
Varies by industry. SaaS: 2-8% monthly is typical, <5% is good. B2C services: 5-7%. Enterprise: <1-2%. Lower is always better. Negative churn (expansion > churn) is ideal.
Calculator
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Number of customers who cancelled or stopped using your service
Analysis
Interpretation of the current calculator output
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How to Use
Step-by-step instructions
- 1Enter total customers at the start of the period
- 2Input number of customers lost during the period
- 3Review churn rate and retention rate
- 4Compare with industry benchmarks (typically 2-8% monthly)
- 5Lower churn = better retention and growth potential
Churn & Retention Rates
Churn rate measures the percentage of customers who stop using your product/service. Retention rate shows the percentage who stay.
Churn Rate = (Customers Lost ÷ Total Customers) × 100%
Retention Rate = 100% - Churn RateVariables:
Churn Rate% of customers lostRetention Rate% of customers retainedTotal CustomersCustomers at start of periodCustomers LostCustomers who cancelled/leftExample
SaaS Business Example
Inputs:
Total Customers:1,000 customers
Customers Lost:50 customers (in one month)
Steps:
- 1.Churn Rate = (50 ÷ 1,000) × 100 = 5%
- 2.Retention Rate = 100% - 5% = 95%
- 3.Monthly churn of 5% is average for SaaS
- 4.At this rate, you'd have 540 customers after 12 months without new acquisitions
Result:
5% monthly churn rate, 95% retention rate
Frequently Asked Questions
Monthly vs annual churn rate?
Monthly churn is more useful for tracking trends. Annual churn = 1 - (1 - monthly rate)^12. A 5% monthly churn = 46% annual churn, which compounds significantly.
How do I reduce churn?
Improve onboarding, provide excellent support, add value regularly, identify at-risk customers early, offer incentives to stay, build community, and address root causes through exit surveys.