Churn Rate Calculator — Customer Retention, LTV & MRR Churn
Enter customers at the start of a period, customers lost, and your average revenue per customer to get churn rate, retention rate, customer LTV, annualised churn, and MRR impact — all in one calculation.
%
Percentage of customers lost this period
5%
churnRetained customers
95%
Churned customers
5%
- 1
Customers retained
1,000 − 50 = 950 - 2
Customer churn rate
50 ÷ 1,000 × 100 = 5
How does this calculator work?
Churn rate = customers lost ÷ starting customers × 100. Customer lifetime (months) = 1 ÷ monthly churn rate. LTV = ARPU × lifetime × gross margin. Annualised churn = 1 − (1 − monthly rate)^12. At 5% monthly churn a 1,000-customer base loses about 50 customers per month and has a 20-month average customer lifetime.
Formula
How this is calculated
Customer churn rate measures what fraction of your customer base was lost in a given period (month, quarter, year). The raw formula is simple: customers churned divided by customers at the start of the period, expressed as a percentage. A 5% monthly churn means 5 in every 100 customers cancel each month. Even a modest churn rate compounds into significant annual loss: 5% monthly churn equates to about 46% annual churn (1 − (1 − 0.05)^12 ≈ 0.46).
Customer lifetime (in the same period units) is the reciprocal of the churn rate: 1 ÷ churn fraction. At 5% monthly churn, the average customer stays for 20 months. Customer Lifetime Value (LTV) multiplies this by the average revenue per user (ARPU) and the gross margin, giving the net contribution an average customer makes over their lifetime. LTV is a key input to growth economics — particularly the LTV : CAC ratio, where CAC is customer acquisition cost.
MRR (Monthly Recurring Revenue) churn is the lost revenue directly attributable to churned customers: churned customers × ARPU. This is distinct from expansion MRR (from upsells) and contraction MRR (from downgrades). A healthy business can offset customer churn with revenue expansion from retained customers — so the MRR churn view is often more important than raw customer count churn.
Frequently asked questions
For B2C SaaS, monthly churn of 2–5% is typical; below 2% is excellent. For B2B / SMB SaaS, 1–2% monthly is reasonable; enterprise SaaS often targets below 1% monthly (less than 12% annually). These figures are 2024 benchmarks and vary widely by market segment, price point, and product category.
Both matter, but revenue churn (MRR churn) is usually more actionable because losing a high-value customer hurts more than losing a low-value one. A business can have negative net revenue churn (revenue grows even while some customers leave) if upsells and expansions outpace cancellations — that is the ideal scenario.
Simply multiplying by 12 overstates annual churn because it ignores compounding — you cannot lose 60% of customers if each month's losses are taken from the dwindling base. The correct formula is 1 − (1 − monthly churn rate)^12, which gives the true fraction lost over a full year assuming a constant monthly rate.
TG we-Calculate Editorial Team. (2026). Churn Rate Calculator — Customer Retention, LTV & MRR Churn [Online calculator]. TG we-Calculate. https://we-calculate.com/calculator/churn-rate-calculator
TG we-Calculate Editorial Team. "Churn Rate Calculator — Customer Retention, LTV & MRR Churn." TG we-Calculate. 2026. https://we-calculate.com/calculator/churn-rate-calculator.
TG we-Calculate Editorial Team, "Churn Rate Calculator — Customer Retention, LTV & MRR Churn," TG we-Calculate, 2026. [Online]. Available: https://we-calculate.com/calculator/churn-rate-calculator
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