This calculator works out the churn rate for a period such as a month. Enter the number of customers at the start of the period and how many of them left during it; you get the churn rate and the matching retention rate, both in percent.
Formula
Churn rate = customers lost ÷ customers at the start × 100%. Retention rate = 100% − churn rate.
- Count only customers who were there at the start; new sign-ups during the period are left out of both numbers.
Worked Example
500 customers at the start of the month, 25 of them cancel.
- Churn = 25 ÷ 500 × 100 = 5.00%
- Retention = 100 − 5 = 95.00%
How to read the result
Compare churn over periods of the same length. A monthly churn of 5% does not mean 60% a year: if it holds, the share left after 12 months is 0.95¹² ≈ 54%, so yearly churn is about 46%. Revenue churn uses lost recurring revenue instead of customer counts.
Limits and common mistakes
- Lost customers cannot be more than the starting count; the calculator shows Cannot compute.
- Mixing new customers into the lost count understates churn.
- Seasonal businesses should compare the same month year on year.
Frequently Asked Questions
What is a good churn rate?
It depends on the market and contract type; compare with your own history and similar businesses.
How do I convert monthly churn to annual?
Annual churn = 1 − (1 − monthly churn)¹², with churn as a decimal.
Do new customers count?
Not in the standard formula, which tracks the starting group.
What is retention rate?
100% minus the churn rate for the same group and period.
Formula used
in s | Customers at the start of the period | customers | 500 | 1 in lost | Customers lost during the period | customers | 25 | 0 out ch | Churn rate | % | lost / s * 100 + 0 * sqrt(s - lost) | 2 out ret | Retention rate | % | 100 - ch | 2
Each line is one input (in, sel, list) or one result (out: label, unit, formula, decimals). How the calculators work
Method: the standard formula for this calculation, rounded as each result states. See how the calculators work or report an error.
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