SaaS Churn Rate Calculator
Calculate your monthly or annual customer churn rate instantly to monitor your subscription business health.
Your Churn Rate is: 0%
What is SaaS Churn Rate?
Churn rate is a critical metric for any Software as a Service (SaaS) company. It measures the percentage of customers who cancel their subscriptions within a specific timeframe. High churn rates indicate that customers are not finding enough value in your product, while low churn rates suggest high customer satisfaction and a healthy "sticky" product.
The Churn Rate Formula
The standard formula used in this calculator is:
Why Monitoring Churn is Vital
For subscription businesses, growth is a balance between acquiring new customers and retaining existing ones. If your churn rate is higher than your acquisition rate, your business will shrink even if you are spending heavily on marketing. Reducing churn by just 5% can increase profits by 25% to 95% because retaining customers is significantly cheaper than acquiring new ones.
Example Calculation
Suppose your SaaS started the month of January with 500 customers. By the end of January, 25 customers had canceled their accounts. To find the churn rate:
- Lost Customers: 25
- Start Customers: 500
- Calculation: (25 / 500) = 0.05
- Percentage: 0.05 x 100 = 5% Churn Rate
What is a "Good" Churn Rate?
While churn varies by industry, a healthy SaaS churn rate for established B2B companies is typically between 3% and 5% annually. For early-stage startups or B2C SaaS, monthly churn rates of 3% to 8% are common, but the goal should always be to trend downward over time.