Calculate monthly and annualised churn for a subscription business, plus the implied customer lifetime.
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.
SaaS Churn
Monthly churn % = customers lost ÷ customers at start × 100
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.
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.
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.