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Churn Rate Calculator

Find your churn and retention rate.

How it is calculated

Churn rate is the share of the customers you had at the start of a period who left during that period: churn = lost / customers at start × 100. The retention rate is the complement, retention = 100 − churn. The starting count must be greater than zero. Use the same period for both numbers, such as a month or a year, and compare churn only between equal periods. Customers acquired during the period are not part of the starting base and should not be counted, since they could not have been lost from it. The tool does not check that lost customers are fewer than the starting count.

Worked example

A subscription service begins the month with 500 customers and loses 35. Churn = 35 / 500 × 100 = 7.00%. Retention = 100 − 7.00 = 93.00%. If churn continued at the same pace for a year, the customer base would shrink considerably, so the monthly figure matters.

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Common mistakes

  • Dividing by the end-of-period customers instead of the starting count.
  • Counting new customers gained during the period among the starting base.
  • Comparing a monthly churn rate with an annual one; 2% monthly is not 2% yearly.
  • Counting paused or downgraded accounts as lost, which blurs the figure.
  • Reading 93.00% retention as a yearly rate when the data covers a single month.

Sources

About this calculator

This calculator computes churn rate (customers lost during a period ÷ customers at the start of the period × 100) and its complement, retention rate (1 − churn), over whatever time window you choose.

It's used by SaaS and subscription businesses tracking monthly or annual customer loss as a core health metric, product managers evaluating whether a new onboarding flow reduced drop-off, and investors sizing up a subscription company's growth sustainability before churn eats into revenue.

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Comments (1)

  • Editorial team

    Count in the lost figure only customers who were already there at the start of the period. People who signed up and cancelled within the same month are not in the starting number, and including them pushes churn up artificially. Compare like with like, month with month or year with year. Which period do you track, and do you separate new and long-standing customers?

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