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.
- 3-5%
- good SMB monthly churn — IdeaProof Research 2026
- <1%
- good enterprise churn — IdeaProof Research 2026
- 90 days
- critical retention window — IdeaProof Research 2026
- 5-7x
- cost to acquire vs retain — IdeaProof Research 2026
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 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
Recommended Tools & Resources
Your Next Steps
Sources & Citations
- [1]IdeaProof Research 2026
Cite this page
IdeaProof. (2026). How to Calculate Churn Rate for Your Business?. IdeaProof. Retrieved from https://ideaproof.io/questions/calculate-churn-rateLast verified: