Retention
Churn rate calculator
Enter how many customers you had at the start of the month and how many of them cancelled. The calculator gives monthly churn, its annual equivalent and the average customer lifetime it implies.
Monthly churn rate
2%
- Annual churn rateThe monthly rate compounded over twelve months
- 21.5%
- Average customer lifetime
- 50 months
How to read the result
Monthly churn looks small and compounds into something large. Check the annual figure before deciding a monthly rate is acceptable.
Count only customers who were there at the start. Customers who joined and left within the same month distort the rate if they are added to either side.
The formula
RetentionMonthly churn = customers lost ÷ customers at the start of the month.
Annual churn = 1 − (1 − monthly churn) ^ 12.
Average lifetime = 1 ÷ monthly churn.
Frequently asked questions
Both matter and they differ. Customer churn counts accounts lost. Revenue churn counts the recurring revenue lost, so losing one large account weighs more. Use the net revenue retention calculator for the revenue view.
Because each month's churn applies to a smaller group than the month before. Multiplying by twelve overstates it, slightly at low rates and badly at high ones.
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