Churn Rate Calculator
Work out customer churn and retention rates for any month, quarter or year, and convert churn between monthly and annual. Free, no sign-up.
On the first day of the month.
Won during the month.
On the last day of the month.
Already know your rate? Convert it between monthly, quarterly and annual.
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How it's calculated
- Customers lost
- Lost = customers at start + new customers - customers at end
- Churn rate
- Churn % = lost / customers at start x 100
- Retention rate
- Retention % = (customers at end - new customers) / customers at start x 100
- Monthly to annual
- Annual churn = 1 - (1 - monthly churn)^12
Worked examples
Churn and retention rate examples
Four scenarios, including why monthly churn times 12 is the wrong annual number.
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.
Interpreting churn
How to read your churn rate
Rules of thumb for measuring and comparing churn. Ranges are rough and vary a lot by market.
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.
FAQ
Questions people ask
How do you calculate churn rate?
Work out how many customers you lost: customers at the start plus new customers, minus customers at the end. Divide that by customers at the start and multiply by 100.
How do you calculate customer retention rate?
Take customers at the end of the period, subtract the new customers you won during it, divide by customers at the start and multiply by 100. Retention and churn always add up to 100%.
How do I convert monthly churn to annual churn?
Annual churn = 1 - (1 - monthly churn)^12. 5% monthly churn is about 46% a year. Going the other way, monthly churn = 1 - (1 - annual churn)^(1/12).
What is a good churn rate?
It depends on your market. Many consumer subscriptions see 3 to 8% a month, small business software often 2 to 5%, and enterprise software under 1%. The most useful benchmark is your own trend.
Why do new customers not count in the churn denominator?
Customers who joined mid-period have had less time to leave. Measuring against the starting base gives a cleaner rate. Some teams use the average of start and end instead, but pick one method and stick with it.
Is anything I enter stored?
No. The calculator runs entirely in your browser. Nothing you type is sent to a server or saved.
More free tools
- Retention Rate CalculatorCustomer retention rate from start, end and new customers, plus churn.
- Customer Lifetime Value CalculatorCLV from revenue, margin and churn, with your CLV to CAC ratio.
- NPS CalculatorNet Promoter Score from promoters, passives and detractors.
- CSAT CalculatorCustomer satisfaction score from survey ratings, plus CES.
Customers rarely leave over one question. They leave over the ones nobody answered.
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