Free tool · Money & pricing
Churn rate calculator
Customer churn rate is customers lost in a period divided by customers at the start. Revenue churn and net revenue retention apply the same idea to monthly recurring revenue (MRR). Enter a month's numbers to see all three, plus your ending customer count and ending MRR.
Monthly customer churn
4.50%
Average customer lifetime ≈ 22.2 months.
- Gross revenue churn
- 4.38%
- Net revenue retention
- 98.4%
- Annualized customer churn
- 42.5%
- Customers at end of month
- 417
- MRR at end of month
- $17,150
- ARR run rate
- $205,800
Formulas (one period, usually a month)
- Customer churn % = Customers lost ÷ Customers at start × 100
- Ending customers = Customers at start − Customers lost + New customers
- Revenue churn % = Churned MRR ÷ MRR at start × 100
- Net revenue retention % = (MRR at start − Churned MRR + Expansion MRR) ÷ MRR at start × 100
- Ending MRR = MRR at start − Churned MRR + Expansion MRR + New MRR
Worked example: a small SaaS
A scheduling tool starts the month with 400 customers and $20,000 MRR. 18 customers cancel and 35 sign up, so customer churn is 4.5% and the month ends with 417 customers.
The cancelled accounts were worth $900 of MRR (4.5% revenue churn). Existing customers upgraded by $600, and new customers added $1,750. Net revenue retention is ($20,000 − $900 + $600) ÷ $20,000 = 98.5%, and ending MRR is $21,450.
Customer churn vs revenue churn
The two can tell different stories. If mostly small accounts leave, revenue churn will be lower than customer churn — not a disaster. If your biggest accounts leave, revenue churn jumps even when the customer count barely moves.
Net revenue retention adds upgrades back in. Above 100% means existing customers are growing revenue faster than cancellations shrink it, so the business grows even before new sales.
Ways to reduce churn
- Find out why: a one-question cancel survey is the cheapest research you will do.
- Fix onboarding — many cancellations happen because customers never reached the first useful result.
- Recover failed payments with retries and card-update emails; involuntary churn is often a large slice.
- Offer annual plans and pause options to people about to leave.
- Track churn by signup month (cohorts) so a bad month of signups does not hide in the average.
Frequently asked questions
How do you calculate churn rate?
Divide the number of customers lost during the period by the number of customers at the start of the period and multiply by 100. Do not include customers who signed up during the period in the denominator.
What is MRR churn?
MRR churn, or revenue churn, is the monthly recurring revenue lost from cancellations and downgrades divided by MRR at the start of the period.
What is net revenue retention?
The percentage of starting recurring revenue you keep from existing customers after churn, downgrades and expansion. Above 100% means upgrades outweigh losses.
How do I calculate MRR?
Add up the monthly value of every active subscription. Convert annual plans to a monthly figure by dividing by 12, and leave out one-time fees.