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Churn Rate Calculator

Use this churn rate calculator to quantify how many customers you are losing over a given period, expressed as a percentage of the customers you had at the start.

Churn rate is a core metric for subscription businesses, SaaS products, membership programs, and any recurring revenue model because even small changes compound into large differences in long-term revenue and enterprise value.

This tool focuses on simple, logo-based customer churn so you can quickly benchmark retention, monitor trends, and report reliable numbers alongside deeper analyses such as cohorts and customer lifetime value.

Updated Dec 2, 2025

Results

Churn rate for the period

5.00%

Retention rate for the period

95.00%

Methodology

This calculator uses the standard definition of customer churn rate for a period: churn rate equals customers lost during the period divided by customers at the start of the period.

To use it correctly, choose a clear time window such as a month, quarter, or year, then input the total number of active, paying customers at the beginning of that window.

Next, count how many of those customers canceled, failed to renew, or were otherwise lost by the end of the same window, excluding new sign-ups that joined during the period.

The calculator divides lost customers by starting customers to produce a churn rate between zero and one, then formats it as a percentage; the retention rate is calculated as one minus churn, representing the share of customers you kept.

This simple, point-in-time churn rate is widely used in dashboards and investor reporting, but it does not replace cohort analysis, revenue churn, or segmentation by product, region, or customer type when you need deeper diagnostic insight.

Worked examples

If you start the month with 1,000 active customers and 25 of them cancel by the end of the month, your churn rate is 25 divided by 1,000, or 2.5 percent, and your retention rate is 97.5 percent.

If you start the quarter with 500 customers and lose 60 during the quarter, your churn rate is 60 divided by 500, or 12 percent, indicating that roughly one in eight customers left in that period.

If you start the year with 2,000 customers and only 10 churn over the entire year, your churn rate is 0.5 percent and your retention rate is 99.5 percent, which is typical of highly sticky, long-term contracts.

Key takeaways

Churn rate is the percentage of customers you lose over a defined period relative to how many you had at the beginning of that period.

This calculator implements the standard logo churn formula so that finance, operations, and growth teams can align on a single, auditable definition when tracking retention and reporting performance.

Because churn compounds over time, monitoring this metric alongside customer acquisition cost, lifetime value, and net revenue retention is critical for sustainable growth in any subscription or recurring revenue business.

Further resources

Expert Q&A

What is the formula for customer churn rate?

Customer churn rate for a period is calculated as customers lost during the period divided by customers at the start of the period, usually expressed as a percentage.

Which customers should I count as lost?

Count customers who were active and paying at the start of the period and then canceled, did not renew, or otherwise stopped being active customers by the end of the period. Do not include new customers who joined during the period.

Should I use monthly, quarterly, or annual churn?

Choose a period that matches how your contracts and billing cycles work. Many SaaS and subscription businesses track both monthly and annual churn so they can see short-term movements and long-term structural retention.

What is a good churn rate?

There is no universal benchmark because acceptable churn depends on your industry, customer segment, and pricing model. Lower churn is almost always better, but fast-growing businesses can sometimes tolerate higher churn if acquisition and expansion more than offset losses.

How is churn rate different from retention rate and net revenue retention?

Customer churn rate measures the percentage of customers you lose. Retention rate measures the percentage you keep, while net revenue retention also incorporates expansion, contraction, and downgrades in recurring revenue from existing customers.

Can I use this churn calculator for cohort analysis?

This tool is designed for simple, point-in-time churn. For cohort analysis, you would group customers by their start date or another attribute and calculate churn separately for each cohort using the same underlying formula.

Sources & citations