SaaS Churn Rate Calculator
Calculate your customer churn rate, analyze retention patterns, and get actionable insights to reduce churn and increase customer lifetime value.
Calculate Your Churn Rate
Just enter a few key metrics and let our calculator do the rest.
Revenue over Time
Customers Over Time
Excellent retention! Your churn rate is below industry average.
How to Calculate Churn Rate
Calculating churn rate is essential for understanding customer retention and business health. There are two main types of churn to track:
Customer Churn Rate
Customer Churn Rate = (Customers Lost / Total Customers at Start) × 100Measures the percentage of customers who cancel their subscription during a specific period.
Revenue Churn Rate
Revenue Churn Rate = (MRR Lost / Total MRR at Start) × 100Measures the percentage of recurring revenue lost from churned customers.
Example Scenario
Let's calculate churn for a B2B SaaS company:
- Started the month with 1,000 customers
- Lost 50 customers during the month
- Average revenue per customer: $100/month
- Total MRR at start: $100,000
- MRR lost from churned customers: $5,000
Results:
Customer Churn Rate: (50 ÷ 1,000) × 100 = 5%
Revenue Churn Rate: ($5,000 ÷ $100,000) × 100 = 5%
SaaS Churn Rate Benchmarks
High Churn
Monthly churn above 10% indicates serious retention issues requiring immediate attention.
Average Churn
Typical for many SaaS companies, but there's room for improvement with focused retention efforts.
Good Churn
Excellent retention indicating strong product-market fit and customer satisfaction.
How to Reduce Churn Rate
Improve Onboarding Experience
Ensure new users see value quickly through guided tours, activation milestones, and personalized setup flows.
Implement Customer Success Programs
Proactively engage with customers, provide training, and help them achieve their goals with your product.
Monitor Usage Patterns
Track product usage to identify at-risk customers and intervene before they churn.
Gather Customer Feedback
Regular surveys, NPS scores, and feedback loops help identify pain points and improvement opportunities.
Offer Flexible Pricing
Provide options like annual billing discounts, pause subscriptions, or downgrade paths instead of cancellation.
Predict Churn Early
Use analytics and customer health scores to identify churn risk before customers actually leave.
Frequently Asked Questions
What is a good churn rate for SaaS companies?
A good annual churn rate for SaaS companies is typically between 5-7%. Monthly churn rates should ideally be below 2-3%. However, this varies by company size, market segment, and pricing model. Early-stage companies may have higher churn rates (10-15% annually) while mature SaaS companies often achieve churn rates below 5%.
What is the difference between customer churn and revenue churn?
Customer churn measures the percentage of customers lost, while revenue churn measures the percentage of recurring revenue lost. Revenue churn can be lower than customer churn if higher-value customers are retained, or higher if your most valuable customers are churning.
What causes high churn rates in SaaS?
Common causes include poor onboarding experience, lack of product-market fit, inadequate customer support, pricing issues, competitive alternatives, technical problems, and failure to demonstrate ongoing value to customers.
🚀 Ready to Reduce Churn and Grow Your SaaS?
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Retention Focus
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