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Business

Churn Rate Calculator.

Calculates the customer churn rate, the percentage of customers lost over a period, based on the number of customers at the start and the number lost during that period.

Results update live as you type.
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Your inputs

How it works

  1. 1

    Enter the number of customers at the start of the period.

  2. 2

    Enter the number of customers lost during that period.

  3. 3

    The churn rate is calculated as lost customers divided by starting customers, multiplied by 100.

  4. 4

    The retention rate is 100% minus the churn rate.

(lost_customers / start_customers) * 100

Frequently asked questions

What is a good churn rate?

It varies by industry, but generally a lower churn rate is better. For SaaS, annual churn rates of 5-7% are considered good, while higher rates may indicate issues.

How can I reduce churn?

Improve customer onboarding, provide excellent support, gather feedback, and offer incentives for long-term commitment.

What is the difference between churn rate and retention rate?

Churn rate is the percentage of customers lost, while retention rate is the percentage of customers kept. They add up to 100%.

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Churn Rate

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Retention Rate0%
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Estimate for general guidance only — verify important decisions with an appropriate professional.

How it works

Calculates the customer churn rate, the percentage of customers lost over a period, based on the number of customers at the start and the number lost during that period.

  1. Enter the number of customers at the start of the period.
  2. Enter the number of customers lost during that period.
  3. The churn rate is calculated as lost customers divided by starting customers, multiplied by 100.
  4. The retention rate is 100% minus the churn rate.

Formulas

The math behind this calculator, written out so you can verify the result.

Churn Rate

Churn Rate = (Customers Lost / Customers at Start) × 100

This formula gives the percentage of customers that left during a period.

Example:

Input: Start: 1000, Lost: 50

Calculation: (50 / 1000) × 100

Result: 5%

Retention Rate

Retention Rate = 100% - Churn Rate

The complement of churn rate, showing the percentage of customers retained.

Example:

Input: Churn Rate: 5%

Calculation: 100% - 5%

Result: 95%

Real-world use cases

Where this calculation shows up in everyday life.

Monitor Customer Health

Track churn rate monthly to identify trends and address issues early.

Example: If churn spikes, investigate reasons and take corrective action.

Evaluate Business Growth

Compare churn rate with new customer acquisition to understand net growth.

Example: If churn exceeds acquisition, the customer base shrinks.

Benchmark Against Industry

Compare your churn rate with industry averages to gauge competitiveness.

Example: A SaaS company with 5% annual churn is performing well.

Tips and common mistakes

Tips

  • Use consistent time periods when comparing churn rates.
  • Segment churn by customer type to find specific problem areas.
  • Calculate churn rate regularly to spot changes quickly.
  • Combine churn rate with customer lifetime value for deeper insights.

Common Mistakes to Avoid

  • Using the number of customers at the end instead of the start.
  • Forgetting to multiply by 100 to get a percentage.
  • Including new customers acquired during the period in the denominator.

Assumptions and limitations

  • Use the stated inputs and units.
  • Results are estimates for planning and education.
  • Check measurements and source data before making an important decision.