Free SaaS Calculators

Churn Rate Calculator

Understand the impact of customer retention with Churnkey's Churn Rate Calculator. Easily measure your SaaS churn rate, visualize how customer loss affects revenue, and make data-driven decisions to improve retention. Start optimizing your growth strategy today.

Calculate your churn rate

Starting Customers Count

Lost Customers Count

10%

Churn Rate

This means you will lose 10% of your customers each month, every 10 months you will have to replace your entire customer base just to maintain your business.

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Churn type breakdown
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Churn rates over time
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Revenue vs. logo churn
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What is Churn Rate?

Churn rate is the percentage of customers who stop using your product or service over a given period. It is a key indicator of customer retention and business health. Churn can happen due to cancellations, downgrades, non-renewals, or payment failures.
Understanding churn rate helps SaaS and subscription businesses optimize retention efforts, improve customer satisfaction, and maximize revenue growth.

How to Calculate Churn Rate

Churn rate is the percentage of customers you lose within a specified timeframe. It’s assessed on a monthly, quarterly, or annual basis to evaluate customer retention and inform business strategies.
To find your churn rate, simply take the number of customers that you’ve lost during a given period and divide it by the number of customers you had at the beginning of that period. Then multiply that number by 100%. For instance, if you had 1,000 customers at the start of the month and lost 50 by the end of the month, then your monthly churn rate would be 5%.

What is a Good Churn Rate?

This is a tricky question because standards can vary depending on factors such as company size, customer type, specific industry, etc. A reasonable annual churn rate is typically considered to be somewhere between 5-7%, whereas a good monthly churn rate should fall somewhere between 1-3%.

How to Reduce Churn Rate?

Reducing churn is one of the most effective ways to improve revenue and business stability. Here are five strategies to lower churn:

1. Improve Customer Experience & Value

Offering an outstanding product and user experience is the best way to reduce churn. Based on customer feedback, continuously iterate, ensure seamless onboarding, and provide proactive customer support.

2. Leverage Customer Engagement & Analytics

Track customer behavior, segment users, and analyze feedback to identify at-risk customers. Using Net Promoter Score (NPS) surveys and behavioral analytics can help predict and prevent churn.

3. Develop Expansion Revenue & Negative Churn

Negative churn happens when expansion revenue (upsells, add-ons) outweighs lost revenue. Offer additional services, tiered pricing, and loyalty rewards to increase customer lifetime value.

4. Strengthen Customer Loyalty Programs

Loyalty programs, exclusive perks, and personalized incentives can motivate customers to stay longer. Subscription-based businesses can benefit significantly from rewards and referral programs.

5. Offset Churn with Strategic Customer Acquisition

While retention is more cost effective than acquisition, consistently attracting new high-value customers can help offset churn. A well-balanced approach can help ensure long-term growth.
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