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Churn Rate Calculator
Calculate your monthly and annual churn rate, see how it compares to SaaS benchmarks, and understand the revenue impact on your business.
Enter your starting customers and churned customers to calculate your churn rate
SaaS Churn Rate Benchmarks
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What is churn rate?
Churn rate is the percentage of customers who cancel or stop using your product during a given period. It is one of the most critical SaaS metrics because it directly limits growth - a company with 10% monthly churn must replace all of its customers every 10 months just to stay flat.
Churn rate is also a leading indicator of product-market fit. When users genuinely find a product essential, they don't cancel. A flattening retention curve past month 3 - where a segment of users stabilizes and stays indefinitely - is the key PMF signal. If your retention curve keeps declining with no floor, your product hasn't found genuine fit with that cohort.
Churn Rate Formula
Churn Rate = (Customers Lost / Customers at Start) × 100
Annual churn ≈ 1 − (1 − Monthly Churn)¹²
Frequently Asked Questions
What is a good churn rate for SaaS?
Monthly churn below 2% is good for SMB SaaS; below 1% is excellent. Enterprise SaaS often achieves below 0.5% monthly churn due to annual contracts and high switching costs. Consumer SaaS typically runs 5–10% monthly. Annual churn below 10% is the standard enterprise benchmark.
What is the difference between customer churn and revenue churn?
Customer churn measures the number of customers lost. Revenue churn (MRR churn) measures the revenue lost from those customers. They differ when churned customers pay different amounts. A startup losing its biggest enterprise account has a far bigger revenue churn than the customer count suggests.
How does churn rate relate to LTV?
LTV = ARPU / Monthly Churn Rate. Reducing churn from 5% to 2% increases LTV by 150% - more leverage than a price increase. Every point of churn reduction compounds over time through longer average customer lifespans.
How does churn relate to product-market fit?
High churn is one of the clearest signs of missing product market fit. If users genuinely can't live without your product, they don't cancel. A cohort retention curve that flattens past month 3 is the PMF signal - it means that segment has embedded your product in their workflow. A curve that keeps declining has no floor, meaning no real PMF in that cohort.
How do I reduce churn?
The highest-leverage actions: (1) Fix the activation gap - users who never reach the core value prop churn fast. (2) Narrow your ICP - stop selling to companies your product doesn't fit. (3) Add expansion paths - users who add more seats or features churn less. (4) Run regular PMF surveys - find which segments score 40%+ very disappointed and focus there.