Churn Rate Calculator
Calculate customer churn and retention rates for a period, and understand the recurring-revenue impact.
How it works
Churn % = customers lost ÷ customers at start × 100 · Retention % = 100 − churn %
Churn is the share of customers you lose over a period; retention is simply what is left, so the two always add to 100%. Divide customers lost by the count at the start of the period, not the end, so growth during the period does not flatter the number. For subscription businesses, each churned customer removes their monthly recurring revenue (MRR), so even a low-looking rate compounds quickly across a year.
Worked example
Losing 25 of 500 customers in a month is a 5% churn rate and 95% retention. At 5% monthly churn you shed roughly half your customer base over a year if none are replaced — a heavy drag on MRR.
Frequently asked questions
What counts as a good churn rate?
For subscription businesses, monthly churn under ~1% is strong; 5%+ monthly is usually a warning sign. Annual contracts and enterprise accounts typically churn far less than monthly consumer plans.
How does churn hit revenue?
Every churned customer removes their recurring revenue (MRR) and their future lifetime value. At 5% monthly churn you must replace 5% of revenue each month just to stay flat before any growth.
What is the difference between churn and retention?
They are two sides of the same coin: retention = 100% − churn. 5% churn means 95% retention. Revenue churn can differ from customer churn if the accounts you lose are larger or smaller than average.
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This calculator is for educational purposes. Double-check important results before acting on them.