SellerRule
SaaS

Churn Rate Calculator

Calculate customer churn rate — the percentage of customers who cancel or stop using your service in a given period.

Cancellations or non-renewals

Paying customers at period start

Your Churn Rate

Churn Rate

5.00%

5.00% of customers churned this period.

(15 ÷ 300) × 100

Customers Retained

285 of 300

Avg Customer Lifetime

20.0 periods

Assessment

High — focus on retention

Formula

Churn Rate = (Lost Customers ÷ Starting Customers) × 100
Lost CustomersCustomers who cancelled in the period
Starting CustomersCustomers at period start

Example Calculation

Started with 300 customers, lost 15.

Churn Rate = (15 ÷ 300) × 100 = 5.00%

Churn Rate Benchmarks

< 2% monthlyBest-in-class enterprise SaaS
2% – 5%Healthy SMB SaaS range
> 10%Critical retention issue

Common Mistakes

  • Confusing monthly and annual churn.
  • Not distinguishing logo vs revenue churn.
  • Using ending count instead of starting count.

Frequently Asked Questions

Negative churn (net revenue retention above 100%) occurs when expansion revenue from existing customers exceeds revenue lost from churn and downgrades. It is a hallmark of strong SaaS businesses.

Disclaimer: Results produced by this calculator are estimates for informational purposes only and do not constitute financial, business, or professional advice. Actual results will vary based on your specific business conditions, market factors, and other variables. Always consult qualified professionals before making business decisions.