Churn Rate Calculator
Churn rate is the percentage of customers — or revenue — you lose over a period. It is the quiet number that decides whether a business compounds or leaks. Enter how many customers you started with and how many you lost, and this free calculator returns your customer churn rate, your retention rate, and, if you add the figures, your revenue churn.
What is churn rate?
Churn rate measures how much of your customer base — or recurring revenue — disappears over a set period, usually a month or a year. A 5% monthly churn means that for every 100 customers, 5 leave each month. Its mirror image is the retention rate: if 5% churn, 95% stay.
Churn matters because it compounds. Small differences in monthly churn lead to enormous differences in how long customers stay and what they are worth over their lifetime, which is why retention is one of the highest-leverage things a subscription or service business can improve.
The churn rate formula
Customer churn rate (%) = customers lost ÷ customers at start × 100
Retention rate (%) = 100 − churn rate
Revenue churn (%) = revenue lost ÷ revenue at start × 100
Customer churn counts heads; revenue churn counts dollars. They can differ a lot — losing a few large accounts can mean low customer churn but high revenue churn, which is why both are worth tracking.
A worked example
You begin the month with 1,000 customers and lose 50. Those customers represented $4,000 of your $100,000 monthly revenue.
- Customer churn: 50 ÷ 1,000 × 100 = 5%
- Retention: 100 − 5 = 95%
- Revenue churn: $4,000 ÷ $100,000 × 100 = 4%
Revenue churn (4%) is lower than customer churn (5%) here, which means the customers who left were slightly below-average spenders.
What is a good churn rate?
It depends heavily on the model. For consumer subscriptions, monthly churn of 3–8% is common; strong B2B software often runs well under 1% monthly (single-digit annually). The most important comparison is your own trend: churn that falls month over month is a sign the product and onboarding are improving. Watch for negative revenue churn — when expansion from existing customers (upgrades, add-ons) outweighs what you lose — which is the gold standard for recurring-revenue businesses.
How to reduce churn
Most churn is decided early: customers who reach value quickly stay, those who don’t drift away. The highest-impact moves are a strong onboarding that gets people to their first win fast, proactive outreach before renewal or when usage drops, and removing the friction and unanswered questions that quietly push people to cancel. Always-on, instant support — answering questions the moment they arise rather than hours later — is one of the most reliable ways to keep customers, which is exactly where AI agents earn their place.
Frequently asked questions
Is the churn rate calculator free?
Yes, free with no sign-up. It runs in your browser and stores nothing.
How do I calculate churn rate?
Divide the number of customers lost during a period by the number you had at the start, then multiply by 100. Losing 50 of 1,000 customers is a 5% churn rate.
What is the difference between customer churn and revenue churn?
Customer churn counts how many customers left; revenue churn counts how much recurring revenue left. They differ when the customers who leave spend more or less than average — losing big accounts raises revenue churn even if few customers go.
What is retention rate?
Retention rate is the percentage of customers who stay — simply 100 minus the churn rate. A 5% churn means a 95% retention rate.
What is a good churn rate?
It varies by model: 3–8% monthly is common for consumer subscriptions, while strong B2B software runs under 1% monthly. The best benchmark is your own churn trending down over time.
What is negative churn?
Negative revenue churn happens when expansion revenue from existing customers (upgrades and add-ons) exceeds the revenue lost to cancellations. It means your existing base grows even without new customers — the ideal for recurring-revenue businesses.
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