How do I calculate my SaaS churn rate?

Divide the number of customers lost during a period by the number of customers at the start of that period, then multiply by 100. For example, losing 10 out of 200 customers in a month gives you a 5% monthly churn rate.

What is a good monthly churn rate for SaaS?

It depends on your segment. Enterprise SaaS typically sees 0.5-1% monthly churn, mid-market 1-2%, and SMB-focused products 3-7%. Consumer subscriptions can exceed 8% monthly.

How does churn rate affect customer lifetime value?

Churn rate and customer lifetime value have an inverse relationship. Customer lifetime in months equals 1 divided by your monthly churn rate. At 5% monthly churn, average customer lifetime is 20 months. Cutting churn to 3% extends it to 33 months.

What is the difference between customer churn and revenue churn?

Customer churn (logo churn) measures the percentage of customers who cancel. Revenue churn measures the percentage of MRR lost. They can differ significantly, losing many small accounts is high customer churn but may be low revenue churn, while losing one enterprise account is the opposite.

SaaS Churn Rate Calculator

See exactly how much revenue your SaaS is losing to churn every month and year, and what each customer is really worth.

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What Is SaaS Churn Rate?

Churn rate measures the percentage of customers who cancel their subscription during a given period. For SaaS businesses, monthly churn rate is the most common metric: divide the number of customers lost during the month by the number of customers at the start of the month, then multiply by 100.

The Churn Rate Formula

Monthly Churn Rate = (Customers Lost ÷ Customers at Start of Month) × 100

For example, if you start the month with 200 customers and lose 10, your monthly churn rate is 5%. That may sound small, but compounded over 12 months it means losing over 46% of your customer base, and the revenue that comes with them.

What Is a Good SaaS Churn Rate?

Industry benchmarks vary significantly by segment. Enterprise SaaS companies typically see 0.5-1% monthly churn, while SMB-focused products average 3-7%. Consumer subscription apps can exceed 8% monthly. The key is comparing your rate against your specific category, use our churn benchmarks databaseto find your industry's baseline.

How to Reduce Your Churn Rate

Reducing churn starts with understanding why customers leave. Common drivers include poor onboarding, unclear value proposition, and pricing misalignment. Tools like RetentionCheck's feedback analysis can identify the specific patterns in your cancellation data. Even a 1% reduction in monthly churn can dramatically increase customer lifetime value and recover significant revenue over time.

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Explore more churn insights

Cloud Storage & Productivity churn rate3.9% monthly, 38.2% annual. Median ARPU $5.Education churn rate7.4% monthly, 59.9% annual. Median ARPU $12.Coworking Spaces churn rate6.4% monthly, 54% annual. Median ARPU $150.Revenue Churn vs Customer Churn: What's the Difference?Revenue churn measures MRR lost; customer churn measures accounts lost. Learn when they diverge, which metric matters more, and how to calculate both.How Better Onboarding Reduces ChurnOnboarding is the highest-leverage churn lever in SaaS. Learn which onboarding improvements cut first-90-day churn by up to 40%, with benchmarks and frameworks.Why Teams Are Leaving Linear: The Narrow Churn PatternI analyzed 30+ public Linear critiques across G2 and Hacker News. Churn Health Score: 72/100, grade B. The churn pattern is narrow, bounded, and mostly about scale pricing. The opposite of most SaaS churn.NRR (Net Revenue Retention) (glossary)Revenue from existing customers this period vs. last, including expansion and churn.Churnkey alternativesChurnkey is built for the retention team you don't have yet. RetentionCheck is built for the founder reading exit feedback at midnight.

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