Churn Rate Calculator
Calculate your customer churn rate and revenue impact
Converge Team
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Churn rate measures the percentage of customers who leave your business during a given period. For subscription and SaaS businesses, it is arguably the most important metric because it directly determines whether you're growing or shrinking — and how efficiently you can invest in acquisition.
According to Recurly's 2024 analysis of over 2,000 subscription businesses, the median monthly churn rate across B2B SaaS is 4.7%. B2C subscription services see higher churn at 7.1% monthly. The gap between average and best-in-class is significant: top-quartile SaaS companies maintain monthly churn below 2%.
The compounding effect of churn is what makes it so critical. A 5% monthly churn rate doesn't mean you lose 60% of customers per year — it means you lose 46% (because each month's churn is applied to a shrinking base). This still means you need to replace nearly half your customer base annually just to maintain revenue, before any growth happens.
Research from Bain & Company shows that reducing churn by just 5% can increase profits by 25-95%. This is because retained customers cost less to serve, buy more over time, and refer new customers. For support teams, churn reduction is one of the clearest ROI arguments for investing in service quality. Pair this metric with your customer retention rate and CLV for a complete picture of customer health.
How to Use This Calculator
- Enter starting customers: The number of customers at the beginning of the period.
- Enter churned customers: The number who cancelled or didn't renew during the period.
- Optional — add revenue data: Enter average revenue per customer to see the financial impact of churn.
- Review results: See monthly churn rate, annualized churn, implied customer lifetime, and revenue impact.
Pro Tips
- Track cohorts: Measure churn by signup month. If January signups churn at 8% but March signups churn at 3%, your onboarding improved.
- Separate voluntary and involuntary: Failed payment churn (involuntary) is a billing problem, not a product problem. Fix it with dunning emails and card retry logic.
- Measure net revenue churn: If upgrades from existing customers exceed revenue lost to churn, you have negative net churn — the holy grail of SaaS economics.
- Focus on early churn: Most churn happens in the first 90 days. Invest in onboarding, activation, and early support to make the biggest impact.
- Set churn reduction targets: A realistic goal is reducing monthly churn by 0.5-1% per quarter. Small improvements compound into massive long-term gains.