SaaS churn rate calculator
Customer churn rate is the customers you lost in a period divided by the customers you had at its start. Enter your counts and MRR movements to get customer churn, gross and net revenue churn, net revenue retention and the average customer lifetime that churn implies.
Customer churn rate per month
3%
12 of 400 customers lost; 97% kept
- Customer retention rate
- 97%
- Customers at the end of the period
- 418Start − lost + new.
- Annualised customer churn
- 30.62%1 − (1 − 3%)¹²: monthly churn compounds, so a year is not 12 × 3%.
- Implied average customer lifetime
- 33.3 months (2.8 years)1 ÷ churn rate, if the rate stays at 3% a month.
- Gross MRR churn
- 3.75%(churned + contraction) ÷ starting MRR: ₹30,000 of ₹8,00,000.
- Net MRR churn
- 1.25%(churned + contraction − expansion) ÷ starting MRR. Negative means net expansion.
- Net revenue retention (NRR)
- 98.75%(start − churned − contraction + expansion) ÷ start.
- Gross revenue retention (GRR)
- 96.25%(start − churned − contraction) ÷ start. Never above 100%.
- MRR from starting customers at the end
- ₹7,90,000Excludes MRR from new customers.
- The customers who left were 3% of customers and 3% of MRR, so they were about average-sized accounts. Customer churn counts accounts; revenue churn weighs each one by what it pays.
- All rates are measured against the customers and MRR at the start of the month. Customers who signed up and cancelled within the month aren't in the starting count, so they don't show in these rates; count them separately if you run many short trials.
How is churn rate calculated?
Customer churn rate is the customers lost during a period divided by the customers at its start: losing 12 of 400 customers in a month is 3% monthly churn, and 97% retention. Only customers who were there at the start count as lost, so the rate isn't distorted by customers who joined and left within the period.
Revenue churn uses monthly recurring revenue (MRR) instead of heads. Gross MRR churn adds the MRR of customers who left to the MRR lost to downgrades (contraction) and divides by starting MRR. Net MRR churn also subtracts expansion, the extra MRR from upgrades, so it goes negative when existing customers grow faster than others leave. Net revenue retention (NRR) and gross revenue retention (GRR) are the same figures seen from the other side: 100% minus the churn.
Monthly churn compounds over a year: 3% a month leaves 0.97¹² = 69.4% of customers after 12 months, which is 30.6% annual churn rather than 36%. The average customer lifetime implied by a churn rate is 1 divided by it, so 3% a month means about 33 months, if the rate holds.
customer churn = customers lost ÷ customers at start gross MRR churn = (churned MRR + contraction MRR) ÷ starting MRR net MRR churn = (churned + contraction − expansion) ÷ starting MRR NRR = 1 − net MRR churn GRR = 1 − gross MRR churn annual churn = 1 − (1 − monthly churn)¹² lifetime = 1 ÷ churn
What does a monthly churn rate mean over a year?
| Monthly churn | Annual churn | Customers kept after 12 months | Implied average lifetime |
|---|---|---|---|
| 1% | 11.4% | 88.6% | 100 months |
| 2% | 21.5% | 78.5% | 50 months |
| 3% | 30.6% | 69.4% | 33.3 months |
| 5% | 46.0% | 54.0% | 20 months |
| 7% | 58.1% | 41.9% | 14.3 months |
| 10% | 71.8% | 28.2% | 10 months |
How to calculate your churn rate
- 1Pick the periodChoose month, quarter or year, and use counts and MRR for that same period.
- 2Enter your customer countsType the customers you had at the start, how many of them you lost, and, if you want the end count, how many new customers joined.
- 3Enter the MRR movementsAdd starting MRR and the MRR churned, lost to downgrades and gained from upgrades by the customers you started with.
- 4Read the ratesThe result shows customer churn and retention, gross and net MRR churn, NRR, GRR, the annualised rate and the implied customer lifetime.
Frequently asked questions
What is the difference between customer churn and revenue churn?
Can net revenue churn be negative?
How do I convert monthly churn to annual churn?
What is the difference between NRR and GRR?
How do I work out average customer lifetime from churn?
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