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Churn Rate Calculator

Customers at the start of a period, customers lost, and revenue lost. Get churn, retention, and the average lifetime those rates imply.

Free toolsUnit EconomicsReviewed September 2026

Customers

Active customers on day one. Do not include customers won during the period.

Cancellations and non-renewals during the period.

Revenue churnOptional. Adds gross and net revenue churn.

MRR or ARR at the start of the period, matching the period above.

Cancellations plus downgrades.

Upgrades, added seats, price increases.

Customer churn

–

Customers lost ÷ customers at start

Customer retention
–
1 − churn
Expected customer lifetime
–
1 ÷ churn
Gross revenue churn
–
Needs revenue
Net revenue churn
–
Needs revenue
Monthly equivalent
–
Compounded
Annualised churn
–
Compounded

Runs entirely in your browser. Nothing you enter is stored or sent anywhere. Last reviewed September 2026.

Customer churn, revenue churn, and the lifetime they imply

Churn is the share of what you had at the start of a period that you no longer have at the end. Customer churn counts accounts. Revenue churn counts dollars, and it's usually the more honest figure because customers don't leave in equal sizes. Losing three small accounts and keeping one large one can look fine on a customer basis and fine on a revenue basis. Losing the large one is a different story, and only revenue churn shows it.

Net revenue churn subtracts expansion, meaning upsell and price increases from existing customers, from the revenue you lost. When expansion exceeds loss, net churn goes negative and net revenue retention rises above 100%. That is the single figure most subscription investors ask about, because a business with negative net churn grows even in a quarter where it wins no new customers.

Churn only means something with a period attached, and rates don't scale linearly across periods. A 3% monthly churn is not 36% a year. Each month's losses come off a smaller base, so it compounds to about 30.6%. The tool converts between monthly and annual using the compound formula in both directions, and turns your rate into the average lifetime it implies: one divided by churn, in periods. At 3% a month that's about 33 months.

Formulas

Customer churn
= Customers lost ÷ Customers at start
Retention
= 1 − Customer churn
Gross revenue churn
= Revenue lost ÷ Revenue at start
Net revenue churn
= (Revenue lost − Expansion revenue) ÷ Revenue at start
Net revenue retention
= 1 − Net revenue churn
Annual churn
= 1 − (1 − Monthly churn)^12
Monthly churn
= 1 − (1 − Annual churn)^(1/12)
Expected lifetime (periods)
= 1 ÷ Customer churn

Frequently asked questions

How do you calculate churn rate?

Divide the customers lost during a period by the customers you had at the start of it. Starting a month with 1,200 customers and losing 36 is a 3% monthly churn rate, and a 97% retention rate. Do not count customers won during the period in the denominator; they were not at risk for the whole period and they dilute the figure. Revenue churn works the same way with dollars instead of accounts.

What is a good churn rate?

It varies widely by market and contract type. Consumer subscriptions frequently see monthly churn in the mid single digits. Small-business software often runs in the low single digits monthly. Enterprise software with annual contracts is usually measured yearly, often in the high single digits to low teens. The trend in your own number, and how it compares to peers in your segment, tells you more than any universal threshold.

Why is my net revenue churn negative?

Because expansion from existing customers, through upgrades, added seats, or price increases, exceeded the revenue you lost to cancellations and downgrades. Negative net churn means net revenue retention is above 100%: the customer base you already have is growing on its own. It is the figure subscription investors care about most, because it makes growth far less dependent on new acquisition.

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