Churn Rate Calculator
Calculate customer churn rate, retention rate, and customer lifetime to optimize your business metrics
Customer Data
Total customers at the beginning of the period
Number of customers who left during the period
New customers gained during the same period
Churn Analysis Results
Churn Rate Formula
Industry Benchmarks
SaaS/Software
Monthly: 5-7%
Annual: 10-15%
Subscription
Monthly: 3-8%
Varies by industry
Telecom
Monthly: 1-3%
Highly regulated
Retail/E-commerce
Monthly: 5-10%
Seasonal variations
Churn Reduction Strategies
Improve onboarding and customer education
Implement proactive customer support
Regularly collect and act on customer feedback
Offer loyalty programs and incentives
Monitor usage patterns for early warning signs
Personalize customer experiences
Related Metrics
Customer Lifetime Value (CLV)
Total revenue expected from a customer over their lifetime
Net Promoter Score (NPS)
Measures customer satisfaction and loyalty
Customer Acquisition Cost (CAC)
Cost to acquire a new customer
Tip: Monitor churn rate alongside these metrics for a complete customer health picture.
Understanding Churn Rate Analysis
What is Churn Rate?
Churn rate is the percentage of customers who stop using your product or service during a specific time period. It's a critical metric for understanding customer retention and business health.
- • Measures customer loss rate
- • Indicates customer satisfaction levels
- • Helps predict revenue impact
- • Guides retention strategies
Key Formulas
Churn Rate = (Customers Lost ÷ Starting Customers) × 100
Retention Rate = 100 - Churn Rate
Customer Lifetime = 1 ÷ (Churn Rate ÷ 100)
Net Growth = New Customers - Lost Customers
Why Churn Rate Matters
Revenue Impact
Higher churn directly reduces recurring revenue and lifetime customer value.
Growth Efficiency
High churn means more resources needed for customer acquisition to maintain growth.
Business Health
Churn rate indicates product-market fit and customer satisfaction levels.
Improvement Actions
- •Analyze churn reasons through exit surveys
- •Segment customers by churn risk factors
- •Implement predictive churn models
- •Focus on high-value customer retention