Customer Churn Rate Calculator
Customer Churn Rate Calculator
Churn rate measures the percentage of customers you lose over a given period — enter how many customers you started with and how many you lost to see both churn and retention rates.
Even small reductions in churn compound significantly over time in a subscription business, since every retained customer keeps contributing recurring revenue and typically costs far less to keep than a comparable new customer costs to acquire — this is why churn is treated as one of the most closely watched health metrics for any subscription or membership model. A business at 5% monthly churn is losing customers roughly six times faster over a year than one at 1%, a difference that compounds dramatically as the customer base grows.
- Formula: Churn Rate = (Customers Lost ÷ Customers at Start) × 100; Retention Rate = 100% − Churn Rate.
- Example: losing 50 of 1,000 customers = (50 ÷ 1,000) × 100 = 5% churn, 95% retention.
- Why it matters: even small reductions in churn compound significantly over time, since retained customers keep generating revenue without additional acquisition cost.
What time period should I use?
Whatever period matches your business cycle — commonly monthly or annually. Be consistent so you can compare churn over time.
What's considered a "good" churn rate?
It varies hugely by industry — subscription software often targets under 5-7% annual churn, while some consumer subscriptions see much higher rates and still remain profitable.
Customer Churn Rate Calculator
Churn rate measures the percentage of customers you lose over a given period — enter how many customers you started with and how many you lost to see both churn and retention rates.
Even small reductions in churn compound significantly over time in a subscription business, since every retained customer keeps contributing recurring revenue and typically costs far less to keep than a comparable new customer costs to acquire — this is why churn is treated as one of the most closely watched health metrics for any subscription or membership model. A business at 5% monthly churn is losing customers roughly six times faster over a year than one at 1%, a difference that compounds dramatically as the customer base grows.
- Formula: Churn Rate = (Customers Lost ÷ Customers at Start) × 100; Retention Rate = 100% − Churn Rate.
- Example: losing 50 of 1,000 customers = (50 ÷ 1,000) × 100 = 5% churn, 95% retention.
- Why it matters: even small reductions in churn compound significantly over time, since retained customers keep generating revenue without additional acquisition cost.
What time period should I use?
Whatever period matches your business cycle — commonly monthly or annually. Be consistent so you can compare churn over time.
What's considered a "good" churn rate?
It varies hugely by industry — subscription software often targets under 5-7% annual churn, while some consumer subscriptions see much higher rates and still remain profitable.