Churn Rate Calculator

What is Churn Rate?

Churn Rate is the percentage of customers who stop using your product or service during a given period. It is one of the most critical metrics for subscription businesses because it directly impacts revenue growth and customer lifetime value.

Customer Churn Formula

For example, if you start the month with 1,000 customers and lose 50: Monthly Churn = 50 ÷ 1,000 × 100 = 5% churn rate.

Customer Churn vs Revenue Churn (MRR Churn)

Revenue churn can differ significantly from customer churn. For example, losing 10 enterprise customers ($5K MRR each) = 10% customer churn but 50% revenue churn if all other customers pay $500/month. Always track both metrics.

Churn Rate Benchmarks by Industry

How to Calculate Customer Lifetime from Churn

For a 5% monthly churn rate: Average Lifetime = 1 ÷ 0.05 = 20 months. This means the average customer stays for 20 months before churning.

Strategies to Reduce Churn

1. Improve onboarding: Users who reach the "aha moment" in their first week are 3-5x less likely to churn.
2. Track engagement signals: Monitor login frequency, feature usage, and support tickets to identify at-risk customers early.
3. Implement win-back campaigns: Automated re-engagement emails can recover 5-10% of churned customers.
4. Offer annual plans: Customers on annual plans churn 2-3x less than monthly subscribers.
5. Provide proactive support: Reach out to struggling users before they cancel — a quick help session can save the relationship.