How do you calculate churn rate?

Churn rate is calculated by dividing the number of customers lost during a period by the total number of customers at the start of that period, then multiplying by 100. The formula is: ((Starting Customers + New Customers - Ending Customers) ÷ Starting Customers) × 100.

What is a good churn rate?

A good churn rate varies by industry, but generally: 5-7% annually (0.4-0.6% monthly) is excellent, 10-15% annually is acceptable for growing businesses, and anything above 20% annually needs immediate attention. B2B SaaS companies typically see 3-5% monthly churn, while consumer-facing services may have 6-8% monthly churn.

Yes, 20% annual churn is considered high for most businesses. It means you're losing one in five customers each year, which makes growth expensive and unsustainable. For monthly churn, 20% would be extremely high and indicate serious problems with product-market fit or customer satisfaction.

What is a 8% churn rate?

An 8% churn rate depends on the timeframe: 8% monthly churn is concerning and suggests retention issues, while 8% annual churn is reasonable for many B2B businesses. For context, 8% monthly churn would result in losing about 60% of customers annually, which is unsustainable for most business models.

Churn Rate Calculator

Calculate your customer churn rate in seconds to see how many customers you're losing each period.

This calculator is created with Creative Widgets

500+ businesses have built calculators just like this. Build yours free!

Build Free Calculator

How Churn Rate Calculator Works

Customer churn rate measures the percentage of customers who stop using your service during a specific time period. It's one of the most important metrics for subscription businesses because it directly impacts your revenue and growth potential.

The calculator works by comparing your starting customer base with your ending customer base, factoring in any new customers you acquired during the period. This gives you a clear picture of how many existing customers you lost.

You can calculate churn rate using two different methods: either by providing your ending customer count and new acquisitions, or by directly entering your known churn rate percentage. Both methods help you understand customer retention and identify potential issues with your product or service.

The calculator also estimates customer lifetime—how long the average customer stays with your business. This metric helps you understand the long-term value of your customer relationships and plan for sustainable growth.

Churn Rate Calculator Formula Breakdown

Formula

Customer Churn Rate (%) = ((Customers at Start + New Customers - Customers at End) ÷ Customers at Start) × 100
Churned Customers = Customers at Start + New Customers - Customers at End
Customer Lifetime = 1 ÷ (Churn Rate ÷ 100) periods

Variables Explained

Customers at StartThe total number of customers you had at the beginning of the measurement period. This is your baseline customer count before any new acquisitions or losses during the period.
Customers at EndThe total number of customers you had at the end of the measurement period. This includes both existing customers who stayed and new customers acquired during the period.
New Customers AcquiredThe number of new customers you gained during the measurement period. This helps separate growth from retention by showing how many customers you added versus how many existing customers you lost.
Churn RateThe percentage of customers who cancelled or stopped using your service during the measurement period. This is used when you know your churn rate and want to calculate the actual number of churned customers.

Example Calculation

Given:

Customers at Start: 1,000 customers
Customers at End: 1,100 customers
New Customers Acquired: 150 customers

Calculation:

Total customers without churn: 1,000 + 150 = 1,150 customers
Customers lost (churned): 1,150 - 1,100 = 50 customers
Churn rate: (50 ÷ 1,000) × 100 = 5.00%
Customer lifetime: 1 ÷ (5.00 ÷ 100) = 20 periods

Result:

5.00% churn rate with 50 churned customers

Explanation

This example shows a healthy growing business that started with 1,000 customers, gained 150 new customers, but lost 50 existing customers during the period. The 5% churn rate is considered good for most industries, and the 20-period customer lifetime indicates strong customer loyalty.

Tips for Using Churn Rate Calculator

💡Track churn by customer segments (new vs. existing, high-value vs. low-value) to identify specific retention issues rather than just looking at overall averages.
💡Measure churn consistently over the same time periods (monthly or quarterly) and distinguish between voluntary churn (customers choosing to leave) and involuntary churn (payment failures).
💡Focus on early warning signs like declining usage, support tickets, or engagement scores, as these often predict churn 30-60 days before customers actually cancel.

“Feels like Webflow but for calculators“

How it works?

Create engaging calculators in 3 simple steps

Add calculator elements

Build the custom calculator in less than 5 minutes. It's very easy with drag and drop interface

->↓

Copy embed script

When you are happy with your calculator. See the final preview and copy the embed script.

->↓

Install the calculator

Paste the script into the HTML of your website. Oh, and it works on any platform.

Eugen

Creator of Creative Widgets

“After 10+ years in digital marketing, I’ve built calculators that drove thousands of new leads for clients. I realized one thing: calculators convert. They're killer for CRO and great for SEO. That's why I built Creative Widgets—an easy, no-code calculator builder. ”

It's free. Try it out. You'll like it.

— Eugen N.Build Your Free Calculator

FAQ

Have outstanding questions?