SaaS Metrics

Churn Rate Calculator

Track how many customers (or how much revenue) you lose each month.

Inputs

Calculating customers churn. Switch the toggle above to compute the other variant.

Monthly churn rate

About this metric

Churn rate is the percentage of customers (or revenue) you lose in a given period. It is one of the most important metrics in SaaS because small differences compound over time — a 5% monthly churn means losing nearly half your customers each year.

Formula

Churn Rate = Customers Lost / Customers at Start of Period × 100

For revenue churn, replace customer counts with MRR. Annual churn from a monthly rate is calculated as 1 − (1 − monthly churn)^12.

Benchmarks

SMB SaaS monthly churn

3-7%

Mid-market SaaS

1-2%

Enterprise SaaS

<1%

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FAQ

What is a good churn rate for SaaS?

For SMB SaaS, 3-7% monthly is typical. For mid-market, aim for 1-2%. Enterprise SaaS targets below 1% monthly. Annual churn below 10% is excellent at any scale.

What is the difference between customer churn and revenue churn?

Customer churn counts how many accounts cancel. Revenue churn measures the dollar value of lost MRR — it can be lower than customer churn if you mostly lose small accounts, or higher if your big accounts cancel.

How do I reduce churn?

Most churn happens early. Strong onboarding, activation flows, and proactive engagement in the first 30 days have the biggest impact. Once a user reaches their "aha moment," they are far less likely to churn.

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