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.

Only changes how amounts are shown.

Only customers you had at the start who cancelled or didn't renew.

Optional. Used only for the end-of-period count.

Monthly recurring revenue from the customers you had at the start. Leave empty to skip revenue churn.

MRR of the customers who left.

MRR lost to downgrades by customers who stayed.

MRR gained from upgrades and add-ons by customers you had at the start.

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 customer churn compounded over 12 months, and the average lifetime it implies (1 ÷ churn)
Monthly churnAnnual churnCustomers kept after 12 monthsImplied 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

  1. 1
    Pick the periodChoose month, quarter or year, and use counts and MRR for that same period.
  2. 2
    Enter 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.
  3. 3
    Enter the MRR movementsAdd starting MRR and the MRR churned, lost to downgrades and gained from upgrades by the customers you started with.
  4. 4
    Read 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?
Customer churn counts the accounts you lose; revenue churn measures the MRR you lose, including downgrades. Losing a few large customers can mean low customer churn and high revenue churn, so track both.
Can net revenue churn be negative?
Yes. When upgrades and add-ons from existing customers add more MRR than cancellations and downgrades remove, net MRR churn is below zero and net revenue retention is above 100%.
How do I convert monthly churn to annual churn?
Use 1 − (1 − monthly churn)¹², not monthly churn × 12, because each month's churn applies to the customers who are left. 3% a month is 30.6% a year, and 5% a month is 46.0% a year.
What is the difference between NRR and GRR?
Both start from the MRR you had at the beginning of the period and subtract churned and downgraded MRR. Net revenue retention then adds expansion from upgrades, so it can exceed 100%; gross revenue retention leaves expansion out, so it can never be above 100%.
How do I work out average customer lifetime from churn?
Divide 1 by the churn rate for the period: 2% monthly churn implies an average lifetime of 50 months. It assumes the rate stays constant, which is rarely exactly true, so treat it as an estimate.

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