Calculate churn rate

    How to Calculate Churn Rate: Formula & Examples | 2026

    Updated:
    3 min read

    Customer churn rate = (Customers lost during period / Customers at start of period) × 100. For example: 100 customers at month start, 5 canceled = 5% monthly churn. Revenue churn = (MRR lost / MRR at start) × 100. Net revenue churn accounts for expansion: (MRR lost - Expansion MRR) / Starting MRR. Good SaaS churn is 3-5% monthly for SMB, <1% for enterprise. Track both customer and revenue churn—they tell different stories about business health.

    Key Calculate Churn Rate Takeaways

    • Customer churn = (Lost customers / Starting customers) × 100
    • Revenue churn = (Lost MRR / Starting MRR) × 100
    • Net churn = (Lost MRR - Expansion MRR) / Starting MRR
    • Good monthly churn: 3-5% SMB, <1% enterprise
    • Negative net churn is the goal for growth
    • Track both logo and revenue churn
    • Most churn happens in first 90 days
    • Cohort analysis reveals when/why customers leave

    Calculate Churn Rate Statistics

    3-5%

    good SMB monthly churn

    <1%

    good enterprise churn

    90 days

    critical retention window

    5-7x

    cost to acquire vs retain

    Calculate Churn Rate FAQ

    Expert Tips

    Measure weekly, act monthly

    Weekly tracking catches problems fast, monthly smooths noise

    Segment by customer type

    Enterprise and SMB churn have different causes and solutions

    Include downgrades

    Partial churn impacts revenue even if customer stays

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    There are multiple churn formulas depending on what you're measuring. Logo churn counts customers regardless of value. Gross revenue churn counts lost MRR. Net revenue churn subtracts expansion revenue. Negative net churn (expansion > losses) is the holy grail—your existing base grows without new sales. Calculate cohort churn to understand when customers leave. Most churn happens in first 90 days, so focus onboarding optimization there.

    Quick Answer: How to Calculate Churn Rate for Your Business?

    Customer churn rate = (Customers lost during period / Customers at start of period) × 100. For example: 100 customers at month start, 5 canceled = 5% monthly churn.

    Key Points About calculate churn rate

    • Customer churn = (Lost customers / Starting customers) × 100
    • Revenue churn = (Lost MRR / Starting MRR) × 100
    • Net churn = (Lost MRR - Expansion MRR) / Starting MRR
    • Good monthly churn: 3-5% SMB, <1% enterprise
    • Negative net churn is the goal for growth
    • Track both logo and revenue churn

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    This topic connects to: What is a good churn rate?, How to reduce churn?, What is LTV?, What is Unit Economics?. Understanding calculate churn rate helps with What is a good churn rate?, How to reduce churn?, What is LTV?.

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