Churn Rate Calculator

Why It Matters

Even a small, seemingly harmless monthly churn rate compounds into losing a large share of the customer base within a year, quietly undermining acquisition efforts that look successful in isolation. It's also a direct input into Customer Lifetime Value, since a shorter effective lifespan lowers LTV even if pricing and margin stay flat.

Example

A company starts the month with 1,000 customers and loses 30 by month's end. Churn Rate is (30 divided by 1,000) times 100, which equals 3%.

Frequently Asked Questions

• What's considered a good monthly churn rate?

  It varies by business type and customer size, but many SaaS companies aim for monthly churn well under 3%, since even modest churn compounds significantly over a year.

• What typically causes churn to rise?

  Poor onboarding that leaves customers never reaching core value, a competitor offering a better alternative, price increases without added value, and unresolved support issues are the most common drivers.