Below 1%
Free SaaS retention tool
Free Customer Churn Rate Calculator
Customer churn rate is the percentage of customers who stop using your product during a given period. A 5% monthly churn rate means 5 out of every 100 customers cancel each month. This free SaaS churn calculator computes customer churn, gross and net revenue churn, retention, and annualized churn instantly.
Need more than a standalone churn calculator? Go back to FeatureVote to collect feedback, capture feature requests, and reduce churn by shipping what customers actually want.
Enter your retention data
Switch between customer counts and MRR. Calculations update instantly with no API calls.
Period
Monthly mode also annualizes your churn so you can compare against yearly benchmarks.
Your churn results
Live churn, retention, and benchmark comparison for the selected period.
Enter starting customers and customers lost to see your churn rate.
How to calculate churn rate
- 1
Choose customer counts or revenue
Customer counts give you logo churn. Revenue inputs unlock gross and net revenue churn - the metrics investors and boards focus on.
- 2
Enter starting and lost values
Use the count or MRR you had at the start of the period and what you lost during it. Optional inputs (new customers, expansion MRR) refine the analysis.
- 3
Pick monthly, quarterly, or annual
The calculator annualizes shorter periods using compound math (not simple multiplication) so benchmarks stay accurate.
- 4
Read the benchmark and interpretation
Compare your churn to SaaS industry bands and use the plain-English summary to decide where to focus retention work.
SaaS churn benchmarks
Industry bands for monthly customer churn, annual customer churn, and net revenue churn. Use them to translate your number into a verdict.
Monthly customer churn
1% to 3%
Good
3% to 5%
Average
5% to 7%
Concerning
Above 7%
High
Annual customer churn
Below 5%
Excellent
5% to 7%
Good
7% to 15%
Average
15% to 25%
Concerning
Above 25%
High
Net revenue churn
Negative (NRR > 100%)
Excellent
0% to 5%
Good
5% to 10%
Average
Above 10%
Concerning
Churn rate calculator FAQ
Common questions about calculating customer churn, revenue churn, and retention rate for SaaS businesses.
How do you calculate customer churn rate?
Customer churn rate equals the number of customers lost during a period divided by the number of customers at the start of that period, multiplied by 100. If you started the month with 1,000 customers and 30 cancelled, your monthly churn rate is 3%.
What is the difference between gross and net revenue churn?
Gross revenue churn measures only the MRR you lost from cancellations and downgrades, divided by starting MRR. Net revenue churn subtracts expansion MRR (upgrades, cross-sells, usage growth) from lost MRR before dividing. Net churn can be negative when expansion exceeds churn, which is the holy grail for SaaS businesses.
What is a good monthly churn rate for SaaS?
For B2B SaaS, monthly customer churn under 1% is excellent, 1% to 3% is healthy, and anything above 5% usually signals a retention problem. SMB SaaS tends to run higher than enterprise. Always compare against your segment, not a single global number.
How do I convert monthly churn to an annual churn rate?
Annualized churn is not simply monthly churn times 12. The correct formula is 1 minus (1 minus monthly churn) raised to the 12th power. A 5% monthly churn rate compounds to roughly 46% annual churn, not 60%.
Should I include free trial users in churn calculations?
No. Churn rate should only include paying or activated customers. Mixing in trial users inflates the denominator and hides what is really happening with your paying base. Track trial-to-paid conversion separately.
Building a feedback loop reduces churn
Collect, prioritize, and ship feature requests with FeatureVote. Customers stay when they see their feedback turn into shipped product.
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