Churn Rate Calculator
Calculate customer churn rate, retention rate, and average customer lifetime.
By Konstantin Iakovlev · Updated April 2026 · Source: SBA — Business Guide
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
Customer attrition, its mirror image retention, and the average lifetime a customer represents all flow from a single rate. Tracking them lets a business spot trends early, sketch out 2026 revenue, and act before losses compound, an issue projected to touch 15-20% of SaaS companies each year by 2026. In a crowded market these numbers underpin whether growth is actually sustainable.
Churn rate is the number of churned customers divided by total customers at the start of the period, multiplied by 100. Retention is whatever remains after subtracting that from 100%. Average customer lifetime follows from dividing 1 by the churn rate expressed as a decimal, giving a rough sense of how long the typical customer sticks around.
Consistency in the time window matters, so pick monthly, quarterly, or annual and hold to it, and settle on a firm definition of what counts as a churned customer. Folding customers acquired mid-period into the starting total is a frequent error that quietly props up retention. Seasonality deserves a second look too, since heavy churn in December can be perfectly ordinary for certain 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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