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.

Period you are measuring

On the first day of the month.

Won during the month.

On the last day of the month.

Churn rate
4%
80 of 2,000 customers lost this month
Retention rate
96%
Starting customers you kept
Annual equivalent
38.7%
If this rate held all year
Net customer growth
+3.5%
+70 customers
Convert a churn rate

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

%
Annual churn
45.96%
Retention 54.04%

Free. No sign-up. Everything is calculated in your browser, nothing you enter is sent anywhere.

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
Example: 1,000 customers at the start, 100 new and 950 at the end means 150 lost, 15% churn and 85% retention.

Worked examples

Churn and retention rate examples

Four scenarios, including why monthly churn times 12 is the wrong annual number.

Monthly SaaS churn

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.

Quarterly view

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.

Monthly to annual

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.

Growth hiding churn

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.

01

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.

02

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.

03

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.

04

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.

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