Churn Rate Calculator

Already know your rate? Convert it between monthly, quarterly and annual.

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A subscription business measuring one month.

2,000 customers at the start, 150 new, 2,070 at the end.

Lost customers are 2,000 + 150 - 2,070 = 80. Churn is 80 / 2,000 = 4% and retention is 96%. Held for a year, that compounds to about 38.7% annual churn.

A team that reports churn by quarter.

1,000 customers at the start, 100 new, 950 at the end.

150 customers lost, a 15% quarterly churn rate and 85% retention. That is roughly 5.3% a month, not 5%, because churn compounds.

Converting a known monthly churn rate.

5% monthly churn.

1 - (1 - 0.05)^12 = 46% annual churn, not the 60% you get by multiplying 5% by 12. Each month's churn applies to a smaller base.

Customer count went up, so everything looks fine.

500 at the start, 200 new, 600 at the end.

Net growth is +20%, but 100 customers left. That is 20% churn, and the 80% retention rate is the number worth watching.

Measure churn on the starting base

New customers won during the period are excluded from the denominator. That keeps churn comparable month to month even when acquisition swings.

Convert with compounding, not multiplication

Monthly churn times 12 overstates annual churn. Use 1 minus (1 minus monthly churn) to the power of 12, which the converter does for you.

Benchmarks depend heavily on who you sell to

As a rough guide, consumer subscriptions often see 3 to 8% monthly churn, while B2B software sold to larger companies is often under 1% a month.

Track revenue churn alongside customer churn

Losing ten small customers is not the same as losing one large one. Customer churn tells you how many leave, revenue churn tells you how much it costs.