Churn Rate Calculator

What is churn rate?

Churn rate is the percentage of customers or revenue you lose in a period, measured against what you started with. Customer churn (logo churn) counts cancelled accounts; revenue churn counts the MRR they took with them, plus downgrades. It is the single biggest drag on compounding growth: a SaaS business losing 3% of revenue a month has to replace roughly a third of its ARR every year just to stand still.

This free churn rate calculator handles both flavors, converts monthly to annual churn correctly (compounded, not multiplied by 12), and shows where you land against directional 2026 SaaS benchmarks — no sign-up, everything runs in your browser.

The churn rate formula, with a worked example

Churn rate = customers lost ÷ customers at start of period

Say you start March with 1,200 customers and 30 cancel during the month: 30 ÷ 1,200 = 2.5% monthly customer churn. For revenue churn, swap in MRR: start the month at $80,000 MRR, lose $1,600 to cancellations and downgrades, and you have 2.0% monthly gross revenue churn.

Annualizing is where most people slip. Churn compounds on a shrinking base, so the correct conversion is:

Annual churn = 1 − (1 − monthly churn)^12

2.5% monthly is not 30% annually — it is 1 − (0.975)^12 = 26.2%. Small monthly numbers hide large annual losses: a "modest" 5% monthly churn compounds to 46% of your customer base gone in a year.

What's a good churn rate?

Directional 2026 medians for B2B SaaS monthly revenue churn, synthesized from public benchmark reports (full context on our benchmarks page):

Stage matters: bootstrapped and seed companies typically run around 3–3.5% monthly, Series A around 2.5%, and Series B+ around 1.5% as they move upmarket. Segment matters more — SMB churn runs structurally higher than enterprise because small customers go out of business, get acquired, and switch tools more often. Compare against your segment, not a blended average.

Common mistakes

• Multiplying monthly churn by 12. That overstates annual churn. Always compound: 1 − (1 − monthly)^12.
• Mixing customer and revenue churn. Losing ten small logos and losing one enterprise account can be similar logo churn but wildly different revenue churn. Track both.
• Polluting the denominator. Only customers who existed at the start of the period can churn during it. Counting mid-period signups in the base understates churn.
• Ignoring downgrades. Gross revenue churn should include contraction, not just cancellations — otherwise you are measuring something between churn and retention and comparing it against the wrong benchmark.

Churn feeds directly into the rest of your unit economics: it sets the denominator of LTV, and it is the loss side of net revenue retention and gross revenue retention. If churn looks bad here, those three calculators show you exactly what it is costing you.