Churn Rate Calculator
Four churn metrics every SaaS CFO reports: customer (logo) churn, gross revenue churn, net revenue churn, and the implied average customer lifetime. Monthly, quarterly, or annual period.
SaaS Metrics Intelligence
Logo churn and revenue churn can tell completely different stories about the same business.
A company losing 10% of its small customers but keeping its large accounts can show 10% logo churn and 2% revenue churn. The reverse is also possible and much more dangerous. This calculator lays out both views so you can see which story applies, and whether expansion is covering the leak.
Customer / Logo
Revenue
Inputs
Customers at start of period
Customers lost (cancelled) during period
Customers added during period
Period length
Results: customer / logo
Customer Churn
–
–
Customer Lifetime
–
months
Annualised Churn
–
implied annual
Benchmarks (annualised)
SMB SaaS
Great: < 5%
OK: 5–10%
Problem: > 10%
Mid-market / Enterprise SaaS
Great: < 7% gross / negative net
OK: 7–15%
Problem: > 15%
Verdict
Frequently asked questions
What is customer churn?
The percentage of customers who leave in a period. Measured monthly or annually. The inverse of retention.
How is churn different from revenue churn?
Customer (logo) churn counts customers who left. Revenue churn counts the revenue lost. A 10-customer loss of your smallest accounts has lower revenue churn than losing 2 big ones.
What churn rate is healthy for SaaS?
SMB SaaS: under 5% annual logo churn is great. Enterprise: under 7% annual. Monthly rates should translate: 0.5% monthly ≈ 6% annual.
What is net revenue churn?
Gross revenue churn minus expansion revenue. Negative net churn (expansion exceeds churn) is the elite SaaS signal.
What is the "leaky bucket" problem?
When new customer acquisition is topping up churn, revenue flat-lines despite high gross adds. Fix churn before fuelling acquisition.
How often should I measure churn?
Monthly for subscription businesses. The monthly series is more actionable than quarterly aggregates.
Does the tool calculate predicted lifetime?
Yes. Lifetime = 1 ÷ monthly churn. 2% monthly churn and 50-month average lifetime.
How to reduce churn?
Early-days activation, usage-based pricing that aligns value with cost, better onboarding, proactive customer success. Usually not price cuts.
Does seasonality affect churn?
Yes. B2C SaaS often sees Q1 churn spike (New Year reviews). B2B often sees Q4 churn (budget cycles). Trailing-twelve-month is a sanity metric.
What is involuntary churn?
Churn from failed payments, expired cards, not customer-initiated cancels. Often 20 to 40% of total churn. Dunning + card updater services recover a lot.
Can churn ever be too low?
For a free trial it can indicate low conversion to paid. For a paid product, low churn is uniformly good.
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