Free tool

Churn Rate Calculator

Calculate your customer or revenue churn rate and see how you compare to industry benchmarks. Works for B2B SaaS and B2C subscriptions.

Business Type

Customers at Start of Month

Customers Who Churned This Month

Formula used:

Churn Rate = (Churned Customers ÷ Starting Customers) × 100

5.0%

Monthly Customer Churn

Needs Improvement

Compared to B2B SaaS benchmarks

46.0%

Annual Churn Rate

460

Customers Lost/Year

Excellent< 2%

Good2-3%

Average3-5%

Needs Work> 5%

Did you know? 20-40% of your churn might be involuntary (failed payments). This is recoverable with proper dunning.

How to Calculate Churn Rate

The basic formula for customer churn rate is:

Churn Rate = (Customers Lost ÷ Customers at Start of Period) × 100

For example, if you started the month with 1,000 customers and lost 50, your monthly churn rate is 5%.

For revenue (MRR) churn, there are two types:

Gross Revenue Churn:

Gross Churn = (Lost MRR ÷ Starting MRR) × 100

Net Revenue Churn: (accounts for expansion revenue)

Net Churn = ((Lost MRR - Expansion MRR) ÷ Starting MRR) × 100

Monthly churn compounds, so you can't simply multiply by 12. The formula is:

Annual Churn = 1 - (1 - Monthly Churn)^12

A 5% monthly churn rate equals approximately 46% annual churn—nearly half your customers lost in a year.

Business Type	Excellent	Good	Average	Needs Work
B2B SaaS	< 2%	2-3%	3-5%	> 5%
B2C Subscriptions	< 4%	4-6%	6-8%	> 8%
Media/Streaming	< 5%	5-7%	7-10%	> 10%

Calculate how much revenue you could recover from failed payments.

Learn everything about calculating and reducing churn rate.

Involuntary churn from failed payments is completely recoverable. Rekko automatically detects and recovers failed Stripe payments.