Churn Rate Calculator: Customer Churn, Revenue Churn & NRR
Calculate monthly customer churn, gross revenue churn, net revenue retention (NRR), annualized churn, and average customer lifetime. Free SaaS churn calculator with benchmarks.
Customers this month
Revenue this month (optional)
What is churn rate?
Churn rate is the share of customers or revenue you lose in a period. It's the counterweight to growth: every point of monthly churn is a hole in the bucket that new sales have to refill before the business can grow.
There are two kinds, and you should track both.
Customer churn (logo churn)
Customer churn = customers lost during the month ÷ customers at the start of the month
Start the month with 400 customers, lose 12, and your customer churn is 3%. Don't include customers who signed up during the month in the denominator. They weren't there to churn at the start.
Gross revenue churn
Gross revenue churn = (churned MRR + contraction MRR) ÷ MRR at the start of the month
Revenue churn weights each loss by how much the customer paid. Losing ten $9 customers matters less than losing one $500 customer, and revenue churn reflects that.
Net revenue retention (NRR)
NRR = (starting MRR − churned MRR − contraction MRR + expansion MRR) ÷ starting MRR
NRR asks: if you didn't sign a single new customer, how much would revenue from your existing customers grow or shrink? Above 100% means upgrades outweigh cancellations, so your existing customer base grows on its own. That's often called negative net churn, and it's the single strongest signal of a great SaaS business.
Monthly vs. annual churn
Monthly churn compounds. 3% monthly churn is not 36% a year. It's 30.6%, because each month you lose 3% of a smaller base: 1 − (1 − 0.03)^12. The calculator shows both so you can compare yourself to benchmarks quoted either way.
Average customer lifetime
Average lifetime (months) ≈ 1 ÷ monthly churn rate
At 2.5% monthly churn, the average customer stays about 40 months. Lifetime feeds directly into customer lifetime value.
What's a good churn rate?
Benchmarks vary by who you sell to:
| Segment | Typical monthly churn | Good |
|---|---|---|
| Consumer / prosumer apps | 5–10% | under 5% |
| SMB SaaS | 3–7% | under 3% |
| Mid-market | 1–2% | under 1% |
| Enterprise (annual contracts) | under 1% | NRR above 110% |
Small, early-stage products often see higher churn while they find product-market fit. Watch the trend more than any single month.
How to reduce churn
- Fix involuntary churn first. Failed payments can be 20–40% of churn for small SaaS. Turn on card-updater services, retry logic, and dunning emails.
- Shorten time-to-value. Customers who reach their first win in onboarding stay longer.
- Offer annual plans. Annual customers churn far less, and you get cash upfront.
- Talk to churned customers. A two-question exit survey shows patterns quickly.
- Add a pause or downgrade option. Contraction is better than churn.
Read the full playbook in our guide to reducing SaaS churn.
Frequently asked questions
How do you calculate monthly churn rate?
Divide the number of customers who cancelled during the month by the number of customers you had at the start of the month. 15 lost out of 500 at the start is a 3% monthly churn rate.
What is a good monthly churn rate for SaaS?
For small-business SaaS, under 3% monthly customer churn is good and 3–7% is typical. B2C apps often run 5–10%. Enterprise SaaS aims for under 1% and net revenue retention above 110%.
What is negative churn?
Negative net churn means expansion revenue from existing customers is larger than revenue lost to cancellations and downgrades, so NRR is above 100%. Revenue from your current customers grows even with zero new sales.
How do I convert monthly churn to annual churn?
Annual churn = 1 − (1 − monthly churn)^12. A 2% monthly churn rate equals about 21.5% annual churn, not 24%.