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SaaS Churn Rate Calculator

Customer Churn

Revenue Churn (MRR)

Customer Churn Rate 0%
Revenue Churn Rate 0%
function calculateChurn() { var startCustomers = parseFloat(document.getElementById('startCustomers').value); var lostCustomers = parseFloat(document.getElementById('lostCustomers').value); var startMRR = parseFloat(document.getElementById('startMRR').value); var lostMRR = parseFloat(document.getElementById('lostMRR').value); var resultsDiv = document.getElementById('churnResults'); var customerChurnSpan = document.getElementById('customerChurnValue'); var revenueChurnSpan = document.getElementById('revenueChurnValue'); var insightsDiv = document.getElementById('retentionInsights'); var custRate = 0; var revRate = 0; if (startCustomers > 0 && !isNaN(lostCustomers)) { custRate = (lostCustomers / startCustomers) * 100; customerChurnSpan.innerText = custRate.toFixed(2) + "%"; } else { customerChurnSpan.innerText = "N/A"; } if (startMRR > 0 && !isNaN(lostMRR)) { revRate = (lostMRR / startMRR) * 100; revenueChurnSpan.innerText = revRate.toFixed(2) + "%"; } else { revenueChurnSpan.innerText = "N/A"; } if ((startCustomers > 0) || (startMRR > 0)) { resultsDiv.style.display = 'block'; var insightText = ""; if (custRate > 5) { insightText = "Warning: Your customer churn rate is high. For SaaS, a healthy monthly churn rate is typically below 3-5%. Consider analyzing your onboarding flow."; } else if (custRate 0) { insightText = "Good: Your churn is within the standard industry range for SMB SaaS. Focus on expansion revenue to reach net-negative churn."; } else { insightText = "Enter your data to see a detailed health analysis of your SaaS retention."; } if (revRate > custRate && custRate > 0) { insightText += " Note: Your Revenue Churn is higher than Customer Churn, suggesting you are losing your highest-paying accounts."; } insightsDiv.innerHTML = insightText; } else { alert("Please enter valid starting numbers to calculate rates."); } }

Understanding SaaS Churn Rate

Churn rate is the percentage of customers or revenue that your SaaS business loses during a specific timeframe (usually monthly or annually). It is the single most important health metric for subscription businesses because it directly impacts your Customer Lifetime Value (LTV) and long-term viability.

The Two Types of Churn

  1. Customer Churn: The count of subscribers who cancel. This measures how well your product fits the general market.
  2. Revenue (MRR) Churn: The amount of Monthly Recurring Revenue lost. This measures the financial impact of cancellations and downgrades.

The SaaS Churn Formula

Churn Rate = (Total Churned Customers in Period / Total Customers at Start of Period) x 100

SaaS Churn Benchmarks

What is a "good" churn rate? It depends on your target market:

  • SMB (Small Business): 3% – 7% monthly churn is common.
  • Mid-Market: 1% – 2% monthly churn is expected.
  • Enterprise: <1% monthly churn (usually measured annually at 6-10%).

Calculation Example

Imagine your SaaS starts the month with 1,000 customers. During the month, 40 customers cancel their subscriptions. To find the churn rate:

  • (40 / 1,000) = 0.04
  • 0.04 x 100 = 4% Monthly Churn

If those 40 customers represented $4,000 in MRR but your total MRR was $100,000, your Revenue Churn would be 4% as well. However, if they were your "Enterprise" clients paying $8,000 total, your Revenue Churn would jump to 8%.

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