SaaS Churn Rate Calculator
Analyze your customer retention and revenue health instantly.
Analysis Results
Customer Churn Rate
0%
Customer Retention Rate
0%
Gross Revenue Churn
0%
Understanding SaaS Churn Rate
In the world of Software as a Service (SaaS), Churn Rate is the most critical metric for long-term viability. It measures the percentage of customers or revenue lost during a specific period. High churn is a "leaky bucket" that can kill even the fastest-growing startups.
Customer Churn vs. Revenue Churn
While both metrics are essential, they tell different stories:
- Customer Churn: Focuses on the number of logos lost. It helps you understand if your product is meeting user expectations.
- Gross Revenue Churn: Focuses on the dollar amount lost. This is vital for understanding the financial impact, especially if you have tiered pricing models where losing one enterprise client is equivalent to losing fifty small business clients.
How to Calculate Churn
The standard formula for Customer Churn is:
Churn Rate = (Lost Customers / Starting Customers) x 100
For Revenue Churn, the logic is similar:
Revenue Churn = (Lost MRR / Starting MRR) x 100
Example Scenario
Imagine your SaaS starts the month with 500 customers and $25,000 in MRR. By the end of the month, 15 customers canceled, representing $750 in lost revenue.
Using our calculator:
- Customer Churn: (15 / 500) = 3%
- Revenue Churn: (750 / 25000) = 3%
- Customer Retention: 97%