Churn Rate Calculator - Measure Customer Attrition with Ease

The Churn Rate Calculator helps you quickly find how many customers you’re losing over a given period. Churn rate is a key metric in subscription-based businesses, SaaS, telecom, and eCommerce. By knowing your churn rate, you can measure customer satisfaction and forecast future growth.

What Is Churn Rate?

Churn rate (also called attrition rate) is the percentage of customers who stop using your product or service during a specific time period. A high churn rate means customers are leaving faster than they're coming in, which can hurt long-term revenue.

Formula to Calculate Churn Rate

The most common churn rate formula is:

$\text{Churn Rate (\%)}=\left(\frac{\text{Customers Lost During Period}}{\text{Customers at Start of Period}}\right)\times 100$

Alternate Formula (Using Start and End Customer Count)

If you don’t know how many customers were lost, but you know the starting and ending customer counts:

$\text{Churn Rate (\%)}=\left(\frac{\text{Customers at Start}-\text{Customers at End}}{\text{Customers at Start}}\right)\times 100$

Example:

Let’s say you start the month with 1,000 customers and end with 920 customers.

Step 1:

$\text{Customers Lost}=1000-920=80$

Step 2:

$\text{Churn Rate (\%)}=\left(\frac{80}{1000}\right)\times 100=8\%$

Why Churn Rate Matters

• Helps identify customer dissatisfaction
• Impacts long-term revenue and growth
• Essential for forecasting and investor reporting
• Drives customer retention strategies

FAQs

What is a good churn rate?

A good churn rate depends on the industry. For SaaS companies, a monthly churn rate below 5% is considered acceptable. Lower is always better—aim for below 2% if you're a mature company.

Can churn rate be negative?

No, churn rate cannot be negative. If you gain customers, that’s referred to as growth or negative net churn, but the churn rate itself is always a positive percentage representing lost customers.

How often should I calculate churn rate?

You should calculate churn rate monthly or quarterly, depending on your business model. Subscription-based businesses often calculate it monthly to quickly detect retention issues.