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Churn rate is one of the most closely watched metrics in any subscription or recurring-revenue business — a simple ratio that directly signals how well you're retaining customers. This calculator finds your customer churn rate and its complement, retention rate, from the number of customers at the start of a period and how many were lost.
How it works
Enter the number of customers you had at the start of the period and how many were lost during it. The calculator divides customers lost by the starting count to find the churn rate as a percentage, then finds retention rate as its complement.
- Enter customers at start of period.
- Enter customers lost during period.
- Click Calculate to see your results.
Examples
500 customers, 25 lost
Losing 25 out of 500 starting customers is a 5% churn rate — equivalently, a 95% retention rate.
Who should use it
- Tracking subscription business health over consecutive reporting periods.
- Benchmarking retention performance against industry standards.
Industry applications
- SaaS and subscription businesses
- Membership organizations and recurring-revenue services
Advantages
- Reports both churn rate and retention rate together for a complete picture.
- Simple, standard formula matching how churn rate is calculated industry-wide.
Limitations
- A single aggregate figure — doesn't break down churn by customer segment or reason for leaving.
Common mistakes to avoid
- Using the ending customer count (which includes new signups) instead of the starting count as the denominator, which distorts the churn rate.
- Comparing churn rates calculated over different period lengths (like monthly vs. annual) as if they were equivalent.
Best practices
- Track churn rate consistently over the same period length (e.g., always monthly) so trends over time are meaningfully comparable.
Tips
- Track churn rate consistently every period (not just occasionally) — a rising trend over consecutive periods is often a more useful signal than any single period's number.