Churn Rate Reality Check
See how customer churn is killing your business growth. Honest churn analysis for subscription businesses.
Churn is the silent killer of subscription businesses. 5% monthly churn sounds small, right? But compounded over a year, that's nearly half your customers gone. This calculator shows you both the monthly number and the brutal annual reality. If you start the year with 1,000 customers and lose 5% monthly, you'll end with about 540. You need to acquire 460 new customers just to stay flat. That's the real cost of churn. Seeing this math clearly is the first step to prioritizing retention over constant acquisition.
Calculator
Common use cases
- Understanding the true impact of customer losses
- Seeing annual churn from monthly numbers
- Prioritizing retention investments
- Honest assessment of subscription business health
How to use
- Enter customers at the start of the period
- Input number of customers lost
- Optionally add MRR for revenue churn
- View churn metrics and lifespan
FAQ
What's a good churn rate?
For B2B SaaS, 2-3% monthly (or under 5% annual) is excellent. B2C and SMB typically see higher churn.
Should I focus on customer or revenue churn?
Revenue churn is often more important. Losing a $10K customer matters more than losing a $100 customer.
How can I reduce churn?
Improve onboarding, increase engagement, provide proactive support, and identify at-risk customers early.
Is 5% monthly churn really that bad?
Yes. It means losing ~46% of customers annually. You need massive acquisition just to stay flat, and growth becomes extremely expensive.
This calculator provides illustrative estimates for planning purposes only and does not constitute financial, tax, or legal advice.