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SaaS Churn Calculator

Calculate monthly and annualised churn for a subscription business, plus the implied customer lifetime.

About SaaS Churn Calculator

Customer churn counts logos while revenue churn counts money, and they diverge when the customers leaving are larger or smaller than average. Annualising compounds the monthly rate rather than multiplying it by twelve. Churn compounds against you: at 5% a month a cohort halves in under 14 months, so growth has to outrun the leak before acquisition spend does anything.

Formula

SaaS Churn

Monthly churn % = customers lost ÷ customers at start × 100

revenue churn
MRR lost, which can differ sharply from customer churn
lifetime
The reciprocal of the monthly churn rate

Worked example

With the default values below, SaaS Churn Calculator returns Monthly Customer Churn of 2.50%. Change any input above and every figure here is recalculated in your browser.

Inputs used

Customers at start of monthminimum 1
1,000
Customers lost during the monthminimum 0
25
MRR at start of monthminimum 0
50,000
MRR lost to churn and downgradesminimum 0
1,400

Results

Monthly Customer Churn
2.50%
Annualised Customer Churn
26.20%
Monthly Revenue Churn
2.80%
Implied Average Customer Lifetime
40.0 months
Verdict
Elevated — retention needs attention

Step by step

  1. 1Values used
  2. 2SaaS Churn
  3. 3Monthly Customer Churn= 2.50
  4. 4Annualised Customer Churn= 26.20
  5. 5Monthly Revenue Churn= 2.80
  6. 6Implied Average Customer Lifetime= 40.0 months
  7. 7Verdict= Elevated — retention needs attention

Assumptions and limits

  • The result is derived only from the 4 inputs listed above. Anything not among them is not part of the calculation.
  • In particular, this calculator does not take inflation, tax, fees or charges or compounding frequency into account.
  • Figures are rounded for display to 2 decimal places, so totals built from several rounded parts can differ slightly from the unrounded arithmetic.
  • This is an estimate for general information and not professional financial, tax or legal advice. See the full disclaimer for the limits that apply to this kind of calculator.

How these calculators are built and tested is described on the Methodology page. If a figure looks wrong, please report it.

Frequently Asked Questions

How is SaaS Churn calculated?

Monthly churn % = customers lost ÷ customers at start × 100 Customer churn counts logos while revenue churn counts money, and they diverge when the customers leaving are larger or smaller than average. Annualising compounds the monthly rate rather than multiplying it by twelve.

Why does SaaS Churn matter?

Churn compounds against you: at 5% a month a cohort halves in under 14 months, so growth has to outrun the leak before acquisition spend does anything.

What values do I need to enter?

This calculator takes 4 inputs: Customers at start of month, Customers lost during the month, MRR at start of month, MRR lost to churn and downgrades. The pre-filled defaults are a realistic starting point — replace them with figures from your own environment for a result you can act on.

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SaaS Churn Calculator – Calculate Monthly Customer Churn