Churn Rate Calculator

Churn Rate is evaluated from Customers at Start of Period, Customers Lost in Period and Period. The calculation reports Churn Rate, Retention Rate and Implied Annual Churn.

Results

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About the Churn Rate Calculator

Churn Rate is treated here as a quantitative relation between Customers at Start of Period, Customers Lost in Period, Period and MRR at Start and Churn Rate, Retention Rate, Implied Annual Churn and Average Customer Lifespan.

The calculator uses a multi formula configuration. Each reported value is read as a direct evaluation of the stored rules with the declared field formats and units.

Formula basis:
Churn% = customers lost / starting customers x 100
Retention% = 100 - churn%
Annual churn = 1 - (1 - monthly churn)^12
Avg lifespan (months) = 1 / monthly churn rate
Revenue churn = MRR lost / starting MRR x 100

Interpret the outputs in the order shown by the result fields. Optional inputs affect only the outputs that depend on those variables.

Formula & How It Works

The calculation applies the following relations exactly as recorded in the metadata:

Churn% = customers lost / starting customers x 100
Retention% = 100 - churn%
Annual churn = 1 - (1 - monthly churn)^12
Avg lifespan (months) = 1 / monthly churn rate
Revenue churn = MRR lost / starting MRR x 100

Each output field is produced by substituting the supplied inputs into the relevant relation and then applying the declared rounding or text format.

Worked Examples

Example 1: SaaS company: 800 customers at start of month, 24 cancelled, MRR $96k lost $2,400

Inputs

customers_start: 800 customers_lost: 24 period: Monthly revenue_start: 96000 revenue_lost: 2400
Churn Rate: 3%. Retention Rate: 97%. Implied Annual Churn: 30.6%. Average Customer Lifespan: 33.3 months. Revenue Churn Rate: 2.5%

With Customers at Start of Period = 800, Customers Lost in Period = 24, Period = Monthly and MRR at Start = 96,000 as the stated inputs, the result is Churn Rate = 3%, Retention Rate = 97% and Implied Annual Churn = 30.6%. Each value corresponds to the declared output fields.

Example 2: Gym: 650 members at start of January, 45 quit by month end

Inputs

customers_start: 650 customers_lost: 45 period: Monthly revenue_start: 32500 revenue_lost: 2250
Churn Rate: 6.92%. Retention Rate: 93.08%. Implied Annual Churn: 57.7%. Average Customer Lifespan: 14.4 months. Revenue Churn Rate: 6.92%

With Customers at Start of Period = 650, Customers Lost in Period = 45, Period = Monthly and MRR at Start = 32,500 as the stated inputs, the result is Churn Rate = 6.92%, Retention Rate = 93.08% and Implied Annual Churn = 57.7%. Each value corresponds to the declared output fields.

Example 3: E-commerce subscription: 1,200 subscribers, 108 cancelled in March (monthly)

Inputs

customers_start: 1200 customers_lost: 108 period: Monthly revenue_start: 54000 revenue_lost: 4860
Churn Rate: 9%. Retention Rate: 91%. Implied Annual Churn: 67.8%. Average Customer Lifespan: 11.1 months. Revenue Churn Rate: 9%

With Customers at Start of Period = 1,200, Customers Lost in Period = 108, Period = Monthly and MRR at Start = 54,000 as the stated inputs, the result is Churn Rate = 9%, Retention Rate = 91% and Implied Annual Churn = 67.8%. Each value corresponds to the declared output fields.

Example 4: Telecom company: 85,000 mobile customers, lost 1,275 in Q4 (quarterly churn)

Inputs

customers_start: 85000 customers_lost: 1275 period: Quarterly revenue_start: 6375000 revenue_lost: 63750
Churn Rate: 1.5%. Retention Rate: 98.5%. Implied Annual Churn: 5.9%. Average Customer Lifespan: 200 months. Revenue Churn Rate: 1%

With Customers at Start of Period = 85,000, Customers Lost in Period = 1,275, Period = Quarterly and MRR at Start = 6,375,000 as the stated inputs, the result is Churn Rate = 1.5%, Retention Rate = 98.5% and Implied Annual Churn = 5.9%. Each value corresponds to the declared output fields.

Common Use Cases

  • Calculate monthly and annual churn rate from customer data
  • Estimate average customer lifespan from churn rate
  • Analyze revenue churn vs customer churn