SaaS Churn Rate Calculator
Measure your customer retention and revenue health in seconds.
Customer Churn Rate
0%
Revenue (MRR) Churn
0%
Avg. Customer Lifetime
0 Months
Annual Churn Forecast
0%
What is SaaS Churn Rate?
In the Software as a Service (SaaS) world, churn rate is the percentage of customers or revenue lost over a specific period (usually monthly or annually). It is the ultimate health metric for any subscription business. If your churn rate is higher than your growth rate, your business is shrinking.
How to Calculate Customer Churn
The standard formula for customer (or "logo") churn is:
(Customers Lost during Period / Total Customers at Start of Period) x 100
For example, if you started January with 1,000 customers and 50 cancelled by the end of the month, your monthly churn rate is 5%.
Gross MRR Churn vs. Customer Churn
- Customer Churn: Focuses on the number of accounts lost. Important for understanding product-market fit and customer satisfaction.
- Revenue (MRR) Churn: Focuses on the dollars lost. This is more critical for financial forecasting, as losing one "Enterprise" customer might hurt more than losing ten "Basic" plan customers.
What is a "Good" Churn Rate?
Benchmark churn rates vary by target market:
- SMB (Small Business): 3% – 7% monthly churn is common.
- Mid-Market: 1% – 2% monthly churn.
- Enterprise: Less than 1% monthly (or ~5-10% annually) is the gold standard.
The Power of Negative Churn
Negative churn occurs when expansion revenue (upsells, cross-sells) from existing customers exceeds the revenue lost from cancellations. This is the "holy grail" of SaaS, allowing you to grow even if you don't acquire a single new customer.