Annual Churn Rate Calculator for SaaS Businesses
Losing 300 customers out of 2,000 over a year is a 15% annual churn rate — calculate the revenue impact alongside customer attrition.
How to use this tool
- Enter customers at start of period, customers lost during period, mrr at start of period and mrr lost (churned revenue) in the fields above.
- Results update instantly as you type — or click Calculate.
- Read your customer churn rate and the full breakdown beneath it.
Annual churn rates above 10% signal product-market fit or retention issues — calculate yours and see how the revenue lost compounds over time.
Frequently asked questions
- What is a good monthly churn rate?
- For SaaS, monthly churn below 2% is considered good; below 1% is excellent. Annual equivalents: 2% monthly ≈ 21% annual churn. Enterprise software tends to have lower churn (0.5–1%/mo) than SMB-focused products (2–5%/mo).
- What is the difference between customer churn and revenue churn?
- Customer churn counts the number of accounts lost. Revenue churn (MRR churn) measures the dollar value lost. Revenue churn can be negative (net negative churn) if expansion revenue from existing customers exceeds cancellations — a sign of a very healthy business.
- How does churn relate to customer lifespan?
- Average customer lifespan ≈ 1 ÷ monthly churn rate. At 10% monthly churn, average lifespan is 10 months. Use this to estimate LTV.