Free Churn Rate Calculator. Measure customer churn and retention to improve SaaS and subscription growth.
Free Churn Rate Calculator. Measure customer churn and retention to improve SaaS and subscription growth.
Generated: 1/13/2026, 7:19:48 AM | AskSMB.io
Total customers at the beginning of the period
Number of customers who churned during the period
Time period for context (doesn't affect calculation)
Customers at start must be greater than zero
Churn rate, also known as customer attrition rate, measures the percentage of customers who stop using your product or service during a specific time period. It's one of the most critical metrics for subscription-based businesses, SaaS companies, and any business with recurring revenue. Churn rate directly impacts your growth potential, revenue stability, and company valuation. A high churn rate means you're losing customers faster than you can acquire them, which creates a "leaky bucket" effect where growth becomes nearly impossible.
Churn Rate = (Customers Lost / Customers at Start) × 100
Retention Rate = 100 - Churn Rate
Churn Rate = (25 / 500) × 100 = 5%
Retention Rate = 100 - 5 = 95%
Churn rate and retention rate are two sides of the same coin — they always add up to 100%. If your churn rate is 5%, your retention rate is 95%. While mathematically equivalent, these metrics provide different psychological perspectives. Retention rate emphasizes the positive (customers who stayed), while churn rate highlights the negative (customers lost). Most successful companies track both: churn rate to identify problems quickly, and retention rate to celebrate improvements and align teams around keeping customers happy.
"Good" churn rates vary significantly by industry, customer segment, and pricing model:
Generally, any monthly churn rate above 10% is a red flag that requires immediate attention. Below 5% is considered excellent for most SaaS businesses.