📊 SaaS Churn Calculator free tool
❓ Frequently asked questions
📌 What is churn rate?
Churn rate (also attrition) is the percentage of customers who cancel or don’t renew within a given period. For SaaS, it’s usually measured monthly. It directly impacts revenue and growth.
🎯 What is a good churn rate?
A good monthly churn for B2B SaaS is 1–3% (annual 12–36%). For B2C / low-ticket, 5–8% monthly can be acceptable. Early-stage companies often have higher churn; mature products aim for <2% monthly. Lower is always better, but benchmark against your industry.
🧮 Monthly churn rate formula
Monthly churn rate = (Customers lost during month ÷ Customers at start of month) × 100. Example: 45 lost / 1000 start = 4.5% monthly churn.
📆 Annualized churn rate — why it matters
Annualized churn = 1 − (1 − monthly_churn)^12. It shows the yearly impact of your monthly churn. For 4.5% monthly, annualized is ~42% – which highlights the urgency to reduce churn.
🔁 What is churn meaning in SaaS?
In SaaS, churn refers to customer or revenue loss. It’s a key health metric. Reducing churn by 1% can significantly boost LTV (lifetime value) and profitability.