★ What share of customers leave each month?

Customer Churn Rate Calculator

Calculate monthly customer churn and convert it to annual churn. Free churn rate calculator with the formula, logo vs revenue churn and how to reduce it.

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Customers at start of month

accts

Customers lost during month

accts

Your Churn

2.5%

Annualized: 26.2% of customers lost over a year.
Average customer lifetime: 40.0 months.

monthly churn = customers lost in month ÷ customers at start of month

Churn: 2.5%.

High churn is usually an onboarding problem. I build activation flows that fix it.

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How it works

monthly churn = customers lost in month ÷ customers at start of monthannual churn = 1 − (1 − monthly churn)^12

Divide customers lost during the month by customers you had at the start. Customers who signed up during the month are left out of the denominator, so new growth cannot hide churn.

Monthly churn compounds. 2.5% a month sounds small, but over a year it means losing about a quarter of your customers. The annualized line does that maths for you.

Worked example

A product starts the month with 400 paying customers and 10 of them cancel.

Churn worked example
Input	Value
Customers at start of month	400
Customers lost during month	10
Churn	2.5%

Benchmarks

Acceptable churn depends heavily on who you sell to. Products for small businesses and consumers churn far more than products sold to large companies on annual contracts. Compare yourself with companies selling to the same segment, at the same price point.

Directional: these are rules of thumb, not universal standards. Compare yourself with companies at your stage, selling to the same kind of customer.

How to improve it

Measure time-to-value and shorten it. Customers who reach the core outcome in the first session stay longer.
Talk to every churned customer for a month. The reasons cluster faster than you expect.
Catch involuntary churn: failed card payments are often a large share and are fixable with retries and reminders.
Push annual plans. Customers who commit for a year churn once a year at most.

Questions founders actually ask

What's the difference between logo churn and revenue churn?

Logo (customer) churn counts accounts lost. Revenue churn counts MRR lost, including downgrades. Losing ten small customers and one big one can produce very different numbers. Track both.

How do I convert monthly churn to annual churn?

Not by multiplying by 12. Annual churn is 1 − (1 − monthly churn)^12, because each month you lose a share of a smaller base. 3% monthly is about 30.6% annually, not 36%.

Should new customers who cancel in their first month count?

Yes, if they paid. Hiding first-month cancellations makes churn look better and hides an onboarding problem, which is usually the most fixable kind of churn.

What causes high churn in early-stage SaaS?

Usually customers who were never a good fit, slow onboarding, or a product that solves a one-time problem. Segment churn by acquisition channel and customer type to see which.

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Fine print

Tools: on the house.
Engineer: by the hour.

Moving them is the expensive part, and the part I'm good at: activation flows, upsell moments and the product work behind better numbers.

I'm Himanshu, an AI and full-stack engineer. I build MVPs, AI agents and the growth plumbing around them for early-stage startups.

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