Churn Rate Calculator

Customer churn rate is the number of customers lost during a period divided by the number of customers at the start of that period, expressed as a percentage. For example, if you started the month with 500 customers and lost 30, your monthly churn rate is 6%.

Gross revenue churn only counts lost revenue (downgrades + cancellations). Net revenue churn subtracts expansion revenue (upsells, cross-sells, seat additions) from the lost revenue. Net revenue churn can be negative, which means expansion revenue exceeds churned revenue.

For B2B SaaS, a monthly customer churn rate of 3-5% is considered average, while best-in-class companies achieve 1-2%. Enterprise SaaS products with annual contracts often see much lower monthly churn (under 1%) compared to self-serve SMB products.

Net negative churn means your existing customer base is growing in revenue even without new customers. This happens when expansion revenue from upsells and seat additions exceeds the revenue lost from cancellations and downgrades. It is one of the strongest indicators of product-market fit.

Track both, but they tell different stories. Customer churn shows how well you retain users regardless of plan size. Revenue churn shows the financial impact. A company can have high customer churn but low revenue churn if only small accounts leave, or vice versa.

Annual churn is not simply monthly churn times 12. The correct formula is: Annual Churn = 1 - (1 - Monthly Churn)^12. For example, 5% monthly churn compounds to approximately 46% annual churn, not 60%. This compounding effect is why even small monthly churn rates matter.