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Churn rate calculator

Calculate customer churn from customers at the start, customers lost, and new customers. Convert between monthly and annual churn, and see what churn does to lifetime value.

  • Free to use
  • No sign-up
  • Updated October 2026

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Your churn dashboard

Change a number on the left. Results on the right update as you type.

Monthly churn

3.00%

Customers left after 12 months: 69%

Annual churn

30.6%

1 - (1 - monthly churn) to the power of 12

Average customer lifetime

33 months

1 / monthly churn of 3%

Customer lifetime value

$4,000

$120 margin a month / 3% churn

From your customer counts

Customers at the end
428
Churn per month
3.00%
Average method
2.90%
Net customer growth
7%

If search brought 50% of new customers

Today it brings 33%. Same number of customers, at today's organic and paid CAC.

Blended CAC

$950

now $1,067

Payback

7.9 months

now 8.9 months

LTV to CAC

4.2 : 1

now 3.7 : 1

Share of new customers from search, if SEO grows
%
0%100%

Your numbers

Examples shown. Replace them with your own.

Retention

How many customers cancel

Period
Paying customers on day one of the period
Customers who cancelled during the period
Customers who joined during the period
Revenue

What an average paying account brings in

ARPA, average revenue per paying account
$
Revenue left after hosting and support
%
0%100%
Monthly revenue growth per account from upgrades
%
0%5%
Yearly rate to value future revenue at today's money
%
0%30%
Acquisition

One month of spend and the new customers it brought

Ads, paid social, and sponsorships this month
$
New paying customers from paid channels
Agency, writers, links, and SEO tools
$
New paying customers from search
Salaries and tools not tied to one channel
$
Referral, direct, and partner customers
CAC $1,067LTV $4KRatio 3.7 : 1

Margin from one customer vs what it cost to win them

Payback is the first month the blue margin bar reaches the grey CAC bar. Churn isn't applied here, so this is one customer who stays.

Blended CAC $1,067

Hover a bar for that month's numbers

$0$840$1.7KMonth 1Month 7Month 14
  • Blended CAC
  • Margin earned, before payback
  • Payback month
  • Margin earned, after payback
Next: CAC calculatorBlended, paid, and organic CAC, and payback.Next: CLV calculatorLifetime value and the LTV to CAC ratio.

AI analyst

Chung Digital AI

Get a plain-English read of your unit economics: whether growth pays for itself, what drives it, and what to look at next. It reads only the numbers below.

What it reads

  • Blended CAC: $1,067
  • ARPA: $150/mo
  • Margin: 80%
  • Churn: 3%/mo
  • LTV: $4,000
  • Organic share: 33%

Ask for a plain-English read of your result.

  • Checking your numbers
  • Recalculating CAC, LTV, churn, and payback
  • Comparing them with common benchmarks
  • Writing your explanation

How to calculate churn rate

Customer churn rate is the share of customers who cancel in a period. Divide the customers lost during the period by the customers you had at the start. New customers who joined during the period are left out, so growth doesn't hide cancellations.

Some teams divide by the average of start and end customers instead. This calculator shows both, and turns quarterly or yearly churn into a monthly rate so you can compare like with like.

Churn rate formula

Churn rate = customers lost / customers at the start

With your numbers:

12 / 400 = 3.00% per month

  • Churn rate = customers lost / customers at the start
  • Average method = customers lost / average of start and end customers
  • Annual churn = 1 - (1 - monthly churn) to the power of 12
  • Average customer lifetime = 1 / monthly churn

Monthly vs annual churn

Monthly churn compounds. 3% a month isn't 36% a year: because each month's 3% comes from a smaller group, it works out to about 31% a year. Multiplying by 12 overstates annual churn.

Use monthly churn for monthly plans and LTV, and annual churn when most customers pay yearly. This calculator converts between them for you.

Monthly churn and what it means per year

  • Passed1% a month: about 11% a year
  • Passed2% a month: about 22% a year
  • Passed3% a month: about 31% a year
  • Passed5% a month: about 46% a year

How to reduce churn

Churn falls when customers reach value sooner and keep finding it.

Fix onboarding first

Many cancellations happen in the first weeks. Find the action that predicts customers staying, and get every new account to it fast.

Watch the warning signs

Falling logins, fewer seats, and failed payments come before cancellations. Reach out before the renewal date, not after.

Win the right customers

Customers who find you through search for the problem you solve tend to fit better than those won by a discount.

Want search to bring in cheaper customers?

Our SaaS SEO services are built to grow the organic share of your signups. See what that could be worth with the SEO ROI calculator, or request a free SEO audit.

FAQ

Churn rate questions

Churn rate = customers lost during the period / customers at the start of the period x 100. For example, 12 cancellations from 400 starting customers is 3%.

Not in the standard formula. Customers who joined during the period weren't there at the start, so including them makes churn look lower. The average method includes them indirectly through the end count.

It depends on who you sell to. Products for small businesses often see a few percent a month, while enterprise products with annual contracts usually churn far less. Compare yourself with companies selling to the same kind of customer.

Annual churn = 1 - (1 - monthly churn) to the power of 12. 3% monthly churn is about 31% a year, not 36%.

Customer churn counts accounts that cancel. Revenue churn counts the revenue lost, including downgrades. Net revenue churn also subtracts expansion, and can be negative when upgrades outweigh cancellations.

Average lifetime is 1 / monthly churn, and LTV is monthly margin times lifetime. Cutting churn from 4% to 2% doubles how long a customer stays and doubles their lifetime value.

Yes. We save the numbers you enter for 12 months, with your IP address and approximate location, so we can see how the calculator is used and improve it. They also appear in the page address once you change them, so you can share or bookmark a result. If you use the AI explanation, the numbers are sent to our AI provider to write it. See our privacy policy.