Churn Rate
Calculator
Results
- Churn rate (%)
- 7
- Retention rate (%)
- 93
- Customers remaining
- 1,116
- Average customer lifespan (periods)
- 14.285714
Results
| Churn rate (%) | 7 |
| Retention rate (%) | 93 |
| Customers remaining | 1,116 |
| Average customer lifespan (periods) | 14.285714 |
formula-map diagram
- Churn rate (%)
- 7
- Retention rate (%)
- 93
- Customers remaining
- 1,116
- Average customer lifespan (periods)
- 14.285714
Formula breakdown
Formula
Churn rate % = Customers lost ÷ Customers at start × 100= 7
Note
This is a simplified model. Results use standard textbook definitions and ignore taxes, seasonality, attribution lag, discounting and accounting policy differences. Use them as an estimate, not as accounting, tax or investment advice.
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See all →Frequently asked questions
How is churn rate calculated?+
Churn rate = (customers lost during a period / customers at the start of that period) x 100. It measures the percentage of your customer base that stopped doing business with you over a given time frame, typically monthly or annually.
What's the difference between customer churn and revenue churn?+
Customer churn counts the percentage of customers who leave, treating every customer equally regardless of how much they spend, while revenue churn measures the percentage of recurring revenue lost, which better reflects the financial impact when high-value customers leave.
Why does a small monthly churn rate compound into a big annual impact?+
Losing even 3% of customers each month compounds because that loss repeats every month on a shrinking base, resulting in roughly 30% of the original customer base lost over a year, not just 3% x 12 = 36% in a simple sense — the compounding effect makes retention critical for subscription businesses.
What is considered a good churn rate?+
It varies by industry and business model — consumer subscription apps often see 5-7% monthly churn as normal, while B2B SaaS companies typically aim for under 1-2% monthly churn given higher switching costs and contract commitments. Compare your churn to similar business models, not a single universal benchmark.
Does churn rate account for new customers gained in the same period?+
No — churn rate only measures losses from the existing customer base at the start of the period; it doesn't offset those losses with new customer growth. Net customer growth requires looking at churn alongside new acquisition numbers separately.