Churn Rate Calculator
Calculate customer and revenue churn rates with industry benchmarks. Understand the true cost of churn and its impact on lifetime value.
Customer Churn
Or calculated from above
Revenue Churn (Optional)
LTV Analysis (Optional)
Understanding Customer Churn
Churn rate measures the percentage of customers who stop doing business with you over a given period. It's one of the most critical metrics for subscription businesses and directly impacts growth and profitability.
Churn Rate Formulas
Customer Churn Rate = (Customers Lost / Starting Customers) x 100
Revenue Churn Rate = (MRR Lost / Starting MRR) x 100
Types of Churn
Customer Churn
Percentage of customers who cancel. Simple count-based metric.
Gross Revenue Churn
Total MRR lost from cancellations and downgrades.
Net Revenue Churn
Revenue lost minus expansion. Can be negative (good!).
Logo Churn
Number of accounts lost, regardless of value.
Churn Benchmarks by Industry
Why Churn Matters
- Compounds quickly: 5% monthly churn = 46% annual churn
- Increases CAC payback: Churned customers never become profitable
- Limits growth: High churn creates a leaky bucket problem
- Signals problems: Often indicates product-market fit issues
Strategies to Reduce Churn
- Improve onboarding: First 90 days are critical for retention
- Track health scores: Identify at-risk customers before they leave
- Proactive support: Reach out before problems escalate
- Build switching costs: Integrations and data make leaving harder
- Regular check-ins: QBRs and success reviews maintain engagement
- Collect feedback: Exit surveys reveal fixable issues
Outpace Churn with More Pipeline
While you work on reducing churn, keep your pipeline full with qualified meetings. New customers offset inevitable losses.
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