Churn Rate Calculator
Track customer churn rate and identify retention opportunities.
Formula
Churn Rate = (Customers Lost ÷ Customers at Start) × 100What is Churn?
Customer Churn Rate measures the percentage of your existing customers who cancel or fail to renew their subscriptions over a given timeframe (typically measured monthly or annually).
How to calculate Churn
Take the number of customers you lost during a period and divide it by the number of customers you had at the very start of that period. New customers acquired during the period are normally excluded from the denominator.
Example calculation
If you started the month with 1,000 active customers and 40 of them canceled their accounts by the end of the month, your churn is: (40 ÷ 1,000) × 100 = 4% Churn Rate.
Why Churn matters for SaaS
High churn acts as a leaky bucket. No matter how many new customers you acquire, you will struggle to grow if a large portion leaves. Improving retention by even 1-2% has a massive compounding effect on future revenue.
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