SaaS churn rate calculator: how much is churn costing you?
Enter your customer and revenue data to see your churn rate, revenue impact, LTV, and what reducing churn by 1% would save.
Calculate your SaaS churn rate
Enter your customer and revenue data to see your churn rate, revenue impact, and 12-month projection.
Total paying customers at the beginning
Customers who cancelled or didn't renew
Your total MRR at the start of the period
Step 1 of 2 - core metrics
How the churn calculation works
Customer churn vs. revenue churn
Customer churn counts how many accounts you lose. Revenue churn measures the dollar impact. A SaaS losing 10 small accounts ($10/mo each) has the same customer churn as one losing 10 enterprise accounts ($1,000/mo each) - but very different revenue impact.
The compound effect of churn
Churn compounds. At 5% monthly churn, you lose 46% of your customers annually - not 60% (5% × 12), because each month's churn applies to a smaller base. But the revenue impact is still devastating: a $100K MRR SaaS at 5% monthly churn loses $460K in annual revenue.
SaaS churn benchmarks
| SaaS Type | Good Monthly Churn | Average | Concerning |
|---|---|---|---|
| B2B | < 2% | 3–5% | > 5% |
| B2C | < 4% | 5–7% | > 7% |
| Enterprise | < 0.5% | 1–3% | > 3% |
| SMB-focused | < 3% | 4–6% | > 6% |
Frequently asked questions
- How do you calculate churn rate?
- Monthly churn = customers lost ÷ customers at start of period. For longer periods, we use the compound formula to derive the equivalent monthly rate.
- What's a good SaaS churn rate?
- Under 3% monthly (or under 5% annual) is healthy for most SaaS. Enterprise SaaS should aim for under 1% monthly.
- What's the difference between customer churn and revenue churn?
- Customer churn counts lost accounts. Revenue churn measures lost MRR. If you lose small accounts but upsell large ones, revenue churn can be negative (net negative churn = growth).
- What is net negative churn?
- When expansion revenue from existing customers exceeds revenue lost from churned customers. It means your existing customer base grows even without new signups.
- How do I reduce SaaS churn?
- Focus on onboarding (first 7 days are critical), proactive engagement (reach out when usage drops), and building features that increase daily usage.
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