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Measure your subscription business health by calculating Customer Churn and Revenue (MRR) Churn instantly.

What is SaaS Churn Rate?

In the Software as a Service (SaaS) industry, churn rate is the percentage of subscribers who cancel their subscriptions within a given time period. It is arguably the most critical metric for any recurring revenue business because it directly impacts the "leaky bucket" effect—no matter how many new customers you acquire, high churn will eventually stall your growth.

How to Calculate Customer Churn

The standard formula for Customer Churn is straightforward:

Formula: (Total Customers Lost During Period / Total Customers at the Start of Period) x 100

For example, if you enter a month with 1,000 customers and 50 of them cancel by the end of the month, your churn rate is 5%.

Understanding Revenue (MRR) Churn

While customer churn tracks people, Revenue Churn (specifically Gross MRR Churn) tracks the money. This is vital because losing a high-tier enterprise customer hurts more than losing a low-tier starter customer. Revenue churn calculates the percentage of Monthly Recurring Revenue lost from cancellations and downgrades.

Why Churn Matters for SEO and Business Growth

High churn rates indicate a lack of product-market fit or poor customer success operations. From an SEO and marketing perspective, high churn increases your Customer Acquisition Cost (CAC) requirements. If your churn is 10%, you must grow by 10% just to break even (0% net growth).

SaaS Churn Benchmarks

• Early Stage SaaS: 10-15% monthly churn is common but should be reduced quickly.
• Mature SMB SaaS: 3-5% monthly churn is typical.
• Enterprise SaaS: 1% monthly churn (or less) is the gold standard.

Real-World Example

Scenario: "CloudFlow Analytics" starts January with 800 customers and $40,000 in MRR.

• Customers lost in Jan: 40
• MRR lost from those 40: $2,400
• Customer Churn: (40 / 800) = 5%
• Revenue Churn: ($2,400 / $40,000) = 6%

In this case, the revenue churn is higher than the customer churn, suggesting that higher-paying customers are leaving at a faster rate than average users.

function calculateSaaSChurn() { var startCust = parseFloat(document.getElementById('startCust').value); var lostCust = parseFloat(document.getElementById('lostCust').value); var startMRR = parseFloat(document.getElementById('startMRR').value); var lostMRR = parseFloat(document.getElementById('lostMRR').value); var resultArea = document.getElementById('result-area'); if (isNaN(startCust) || startCust 0) { var revChurn = (lostMRR / startMRR) * 100; document.getElementById('revChurnResult').innerHTML = revChurn.toFixed(2) + "%"; } else { document.getElementById('revChurnResult').innerHTML = "N/A"; } // Lifetime Estimation (1 / Churn Rate) if (custChurn > 0) { var lifetime = 1 / (custChurn / 100); document.getElementById('ltvResult').innerHTML = lifetime.toFixed(1) + " Months"; } else { document.getElementById('ltvResult').innerHTML = "Infinite"; } resultArea.style.display = "block"; }