Free Tool

Churn Rate Calculator for SaaS

Enter your subscriber numbers. Customer churn, revenue churn, annual churn, and average customer lifetime — calculated instantly.

Your numbers
Paying customers at month start
Cancelled or churned in last 30 days
$
Optional — for revenue churn
$
Optional — ARPU × churned customers
Results
Customer Churn Rate
Customers lost ÷ start of month
Revenue Churn Rate
Revenue lost ÷ revenue at start
Annual Churn Rate
Compounded monthly churn over 12 months
Avg Customer Lifetime
1 ÷ monthly churn rate

How churn rate is calculated

Customer Churn

Monthly Customer Churn Rate

Customers lost ÷ Customers at start × 100

Example: 250 customers at month start, 8 lost → 8 ÷ 250 × 100 = 3.2% monthly churn rate. This is the most common SaaS churn metric.

Revenue Churn

Monthly Revenue Churn Rate

Revenue lost ÷ Revenue at start of month × 100

Example: $40K MRR at start, $1,200 lost from churned customers → $1,200 ÷ $40,000 × 100 = 3.0% revenue churn. Revenue churn can be higher or lower than customer churn depending on which customers leave.

Annual Churn

Annual Churn Rate (Compounded)

1 − (1 − monthly_churn)¹² × 100

Monthly churn compounds. A 3% monthly churn doesn't mean 36% annual — it means (1 − 0.03)¹² = 69.4% retention, or 30.6% annual churn. The compounding effect is significant and often misunderstood.

Customer Lifetime

Average Customer Lifetime

1 ÷ Monthly churn rate × 100 (months)

Example: 3% monthly churn → 1 ÷ 0.03 = 33.3 months (~2.8 years). This feeds directly into LTV: LTV = ARPU × average lifetime. Lower churn = longer lifetime = higher LTV.

What's a good churn rate for SaaS?

Under 3% — Healthy

Early-stage SaaS: under 5%/mo

Below 2% is strong. Below 3% monthly churn means you retain ~69% of customers over a year. At 3% monthly churn, average customer lifetime is ~33 months. This is the benchmark most investors use for seed/Series A stage.

3–7% — Watch

At-risk: 5–7%/mo

At 5% monthly churn you lose ~54% of customers in a year. This is survivable if acquisition is cheap, but it means your growth engine must work twice as hard. Investigate why customers are leaving — product issues, pricing misalignment, or competitive pressure.

Above 7% — Critical

Serious problem: above 7%/mo

Above 7% monthly churn means you're losing the majority of your customer base every year. At 8% monthly, only ~39% of customers survive 12 months. Growth becomes a treadmill — you're acquiring just to replace what's leaving. Fix retention before investing in acquisition.

Revenue vs. Customer Churn

Why both metrics matter

Customer churn measures how many people left. Revenue churn measures how much revenue walked out. A business losing high-value customers (high ARPU, long tenure) has worse revenue churn than customer churn. Conversely, losing low-value customers has minimal revenue impact. Track both — revenue churn is the one that actually threatens your runway.

Track your real churn rate automatically

RevScope connects to your Stripe and calculates accurate customer churn rate, revenue churn, LTV, and a 6-month revenue forecast — handling trials, coupons, prorations, and annual plans automatically. $19/mo.

Further reading: How to Reduce SaaS Churn  ·  How to Calculate Customer Lifetime Value  ·  How to Calculate MRR  ·  Free MRR Calculator  ·  Free LTV Calculator

Know your churn before it costs you

RevScope tracks customer churn, revenue churn, LTV, and MRR from your actual Stripe data — not manual estimates.

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