Free Churn Rate Calculator — SaaS Revenue Loss from Customer Churn
Churn rate is the percentage of customers who cancel their subscription in a given period. Even a seemingly small monthly churn of 5% compounds to a 46% annual customer loss. This calculator shows the MRR erosion and total revenue impact of your current churn rate over 12 months, and what improving churn by 1% saves.
saas
See how monthly churn compounds into revenue loss over 12 months.
- Monthly to annual churn rate conversion using compound formula
- 12-month MRR and customer-count projection month by month
- Total revenue lost to churn over the full year
- Savings from a 1% churn reduction — shows the compounding benefit
- Customer retention rate alongside churn rate
- Client-side only — no revenue or customer figures are uploaded
Everything you need in one Churn Rate Impact Calculator
Monthly to annual churn
Converts your monthly churn rate to compounded annual churn — the figure that reveals how much of your customer base disappears in a year.
12-month MRR projection
Projects recurring revenue and customer count for every month, so the slow bleed of churn becomes a concrete, visible number.
Total revenue lost
Sums the gap between your churning revenue and a flat baseline to show exactly how much money churn costs over the year.
1% reduction impact
Quantifies what cutting churn by a single point is worth — usually a surprisingly large recovery, because churn compounds.
How to use Churn Rate Impact Calculator
Enter starting MRR and customer count
Input your current monthly recurring revenue and number of active customers.
Set monthly churn rate
Enter your monthly churn rate as a percentage. Average SaaS churn is 3–7%/month.
See 12-month impact
The calculator shows MRR and customer count at each month, total revenue lost, and savings from 1% churn reduction.
SaaS churn rate benchmarks
| Monthly churn | Annual churn (compounded) | Assessment |
|---|---|---|
| 1% | ~11% | Excellent — enterprise-grade |
| 2% | ~21% | Strong |
| 3% | ~31% | Healthy for SMB SaaS |
| 5% | ~46% | High — common but limits growth |
| 7% | ~58% | Very high — growth is hard |
| 10% | ~72% | Critical — unsustainable |
How to fix common syntax errors
Most “invalid JSON” failures come from a small set of mistakes. Paste the failing JSON above, click Validate, and the tool points you at the exact line and column.
Annual churn = 5% × 12 = 60%Churn compounds. Annual churn = 1 − (1 − monthly rate)^12. A 5% monthly churn rate compounds to ~46% annual, not 60%. Using simple multiplication overstates annual churn and produces an inaccurate picture of retention.
Churn rate = 50 cancellations (no denominator)Churn rate = customers lost ÷ customers at start of period × 100. If you started the month with 500 customers and lost 50, monthly churn is 10%, not 50. Always divide by the cohort size at the start of the measurement window.
Churn denominator = end-of-month customer count (includes new signups)Use the customer count at the start of the month as the denominator, not the end. Including new signups in the base dilutes the churn rate and makes retention look better than it is. New signups belong in the next period's cohort.
Reporting 3% churn without specifying customer vs MRR churnAlways specify the type. Customer churn and revenue churn diverge when customers have different ARPU. If enterprise accounts churn, revenue churn can far exceed customer churn. Report both and track net revenue churn (after expansion) separately.
New users who cancel during trial included in monthly churnTrial cancellations and first-billing-cycle cancellations signal a conversion or activation problem, not a retention problem. Segment them separately. Including them in churn inflates the rate and misdirects the team toward retention tactics when the real fix is onboarding.
Churn measured from explicit cancellations onlyFailed payments cause 20–40% of subscription cancellations in most SaaS products. If your billing system does not automatically retry and recover failed payments (dunning), this churn appears as voluntary but is actually recoverable. Track involuntary churn separately and implement dunning before optimising onboarding.
Frequently asked questions
Churn rate is the percentage of customers who cancel or do not renew their subscription in a given period. Monthly churn = customers lost / customers at start of month × 100. Annual churn = 1 − (1 − monthly churn)^12.
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Further reading
Authority documentation and specifications behind this tool.
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