Free Tool

Churn Rate Calculator

Calculate customer and revenue churn for your subscription business.
See how churn impacts your growth and LTV.

Customers who cancelled or didn't renew

$

Average revenue per user per month

Measure customer retention

Enter your customer or revenue data to calculate churn rate and see how it impacts your long-term growth.

The churn rate formula
Churn = Lost / Starting × 100

Customer churn vs revenue churn

These metrics tell different stories. You need to track both.

Customer Churn (Logo Churn)

The percentage of customers who cancel. Treats all customers equally regardless of how much they pay.

Formula
Customers Lost / Customers at Start × 100
Best for
Understanding customer satisfaction and product-market fit

Revenue Churn (MRR Churn)

The percentage of revenue lost. Weights customers by their value—losing an enterprise customer hurts more.

Formula
MRR Lost / MRR at Start × 100
Best for
Understanding financial health and revenue predictability

🎯 Net Revenue Churn

Net revenue churn accounts for expansion revenue (upgrades, add-ons). If expansion exceeds losses, you have negative churn—the holy grail of SaaS where your existing customers grow your revenue even without new sales.

SaaS churn rate benchmarks

What's a "good" churn rate? It depends on your market and customer type.

<2%

Excellent (Enterprise)

Enterprise SaaS with annual contracts and high switching costs. Best-in-class retention.

3-5%

Good (SMB SaaS)

Small business SaaS products. Healthy churn for monthly subscription models.

5-7%+

High (Consumer/Prosumer)

Consumer apps and low-price-point products. May be acceptable if CAC is very low.

These are monthly churn rates. Annual churn compounds—5% monthly = ~46% annual churn.

How to reduce churn

Improve onboarding

Most churn happens in the first 90 days. Get users to their "aha moment" faster with guided onboarding, templates, and proactive support.

Identify at-risk customers

Track engagement metrics. Customers who stop logging in or using key features are about to churn. Reach out before they cancel.

Add value continuously

Ship new features, improve existing ones, and communicate updates. Customers who see ongoing value don't cancel.

Offer annual plans

Annual customers have ~50% lower churn than monthly. Offer a discount to incentivize longer commitments.

Build anticipation before launch

Start with engaged customers from day one. A waitlist helps you launch to people who actually want your product.

Before choosing Waitlister, I compared several alternatives. Honestly, Waitlister stands far ahead. The product is more intuitive, faster to set up, and clearly built with real attention to detail.
J
John
Verified Purchaser, AppSumo

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