Business Tools

Churn Rate Calculator

Calculate churn rate, retention rate, annualized churn, and customer lifespan

Last reviewed: How we build & verify

How it works

Measures the share of customers or revenue lost over a period. Churn is the single largest constraint on how big a subscription business can get, because it sets the ceiling that new sales have to climb past.

Formula
Customer churn = Customers lost / Customers at start × 100
Revenue churn = MRR lost / MRR at start × 100
Variables
  • Customers lostcancellations during the period, excluding new signups that period
  • Customers at startactive count on the first day of the period
  • MRR lostcancelled plus downgraded recurring revenue
Worked example
Inputs: 1,400 customers at the start of the month, 42 cancelled; $250,000 starting MRR, $18,000 lost and $3,000 regained through upgrades
  1. Customer churn: 42 / 1,400 = 3.0%
  2. Net MRR churn: (18,000 − 3,000) / 250,000 = 6.0%
Result: 3.0% customer churn, 6.0% net revenue churn
Notes
  • Exclude customers acquired during the period from the denominator, or a high-growth month will artificially depress your churn rate.
  • Revenue churn above customer churn means your larger accounts are leaving. That is a much more serious signal than the customer count suggests.
  • Monthly churn does not multiply by 12. Annual retention is (1 − monthly churn)^12, so 3% monthly leaves 69.4% after a year, an annual churn of 30.6%.
  • Net revenue retention above 100% (negative churn) means expansion from existing accounts outruns losses, and the business grows even with zero new sales.

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Frequently Asked Questions

Yes. Churn Rate Calculator costs nothing, needs no account, and runs right in your browser. There is no paywall, no watermark on the results, and no limit on how many times you can run the numbers.

Churn Rate Calculator uses the standard formula for this kind of calculation, so the output is only as good as the figures you type in. Rates, fees, and rules in finance shift over time, and we review the underlying assumptions on a regular schedule; check the "Last reviewed" date above for the most recent pass. Spotted something off? There's a feedback button in the bottom-right corner.

Churn Rate Calculator | ExaCalc