Churn Rate Calculator
Calculate customer churn rate, retention rate, and average customer lifetime.
Churn Rate
5.00%
Retention Rate
95.00%
Avg Customer Lifetime
20.0 mo
Churn Analysis
| Monthly Churn | 5.00% |
| Monthly Churn | 5.00% |
| Annual Churn | 46.0% |
| Retention Rate | 95.00% |
| Avg Customer Lifetime | 20.0 months |
Industry Benchmarks (Monthly Churn)
| SaaS (B2B) | 2% - 5% |
| SaaS (B2C / SMB) | 5% - 7% |
| Consumer Subscriptions | 6% - 10% |
| Enterprise Software | 0.5% - 1.5% |
| Your Monthly Churn | 5.00% |
Use the Churn Rate Calculator above to calculate your results. Enter your values and see instant results — all calculations run in your browser.
Disclaimer: This calculator is for informational purposes only and does not constitute tax, financial, or legal advice. Results are estimates based on the information you provide and current rates. Always consult a qualified tax professional or financial advisor for advice specific to your situation.
How It Works
This Churn Rate Calculator helps businesses understand their customer attrition, retention, and average customer lifetime value. By analyzing these metrics, companies can identify trends, forecast revenue for 2026, and implement strategies to reduce churn, which is projected to impact 15-20% of SaaS businesses annually by 2026. Understanding these figures is crucial for sustainable growth and profitability in an increasingly competitive market.
The churn rate is calculated as (Number of Churned Customers / Total Customers at Start of Period) * 100. The retention rate is simply 100% - Churn Rate. Average Customer Lifetime is estimated as 1 / Churn Rate (expressed as a decimal), providing an average duration a customer remains active.
When calculating, ensure you are consistent with your time period (monthly, quarterly, annually) and clearly define what constitutes a 'churned' customer. A common mistake is to include new customers acquired during the period in the 'Total Customers at Start of Period,' which inflates retention. Also, be mindful of seasonality; a high churn in December might be normal for some businesses.
Example: Q3 2026 SaaS Churn Analysis
- 1 A SaaS company started Q3 2026 with 1,500 active subscribers. During Q3, 75 subscribers canceled their subscriptions.
- 2 Churn Rate = (75 / 1,500) * 100 = 5%. Retention Rate = 100% - 5% = 95%. Average Customer Lifetime = 1 / 0.05 = 20 quarters (or 5 years).
- 3 The company's Q3 2026 churn rate is 5%, with a retention rate of 95% and an average customer lifetime of 5 years.
- 4 This indicates a relatively healthy retention rate for a SaaS business, falling below the industry average of 6-8% for similar subscription models in 2026. The 5-year average customer lifetime provides a valuable metric for future revenue forecasting and customer acquisition cost analysis.
Source: SBA — Business Guide · Last updated: April 2026
Frequently Asked Questions
What is a good churn rate?
How do I calculate churn rate?
How do I reduce customer churn?
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