Churn rate calculator
Churn is the share of customers or revenue you lose in a period. Enter customers and recurring revenue at the start of the period and what you lost. You get customer churn, gross revenue churn and net revenue churn, and for monthly figures an annualized rate.
Your numbers
Customers lost divided by customers at the start.
Revenue lost divided by revenue at the start.
Revenue lost minus expansion, divided by revenue at the start. Can be negative.
1 minus (1 minus monthly churn) to the power of 12.
How it is calculated
Gross revenue churn = (revenue lost to cancellations + downgrades) / revenue at start
Net revenue churn = (revenue lost − expansion revenue) / revenue at start
Annualized churn = 1 − (1 − monthly churn)12
All three use the customers and revenue you had at the start of the period, so new customers do not dilute the rate.
Reading the result
- Customer churn higher than gross revenue churn: the customers leaving pay less than average.
- Gross revenue churn higher than customer churn: the customers leaving, or downgrading, pay more than average. Worth a closer look at larger accounts.
- Net revenue churn below zero: expansion from existing customers is larger than what you lost, so revenue from the starting base grew.
- Small monthly changes add up: 4% monthly churn is about 39% a year; 6% monthly is about 52% a year.
See also the LTV calculator, the MRR calculator, and cohort analysis for churn by signup month.
Common questions
What is the difference between gross and net revenue churn?
Gross revenue churn counts only what you lost (cancellations and downgrades) as a share of starting revenue. Net revenue churn subtracts expansion from existing customers first. Net churn is negative when expansion is larger than the losses.
Should I measure monthly or annual churn?
Match your billing. Monthly plans are usually measured monthly, annual contracts annually. Do not multiply a monthly rate by 12: 5% a month is about 46% a year, because each month churns from a smaller base.
Does a downgrade count as a churned customer?
Not for customer churn: the customer still pays. It does count in gross revenue churn, which is why customer churn and revenue churn can differ.
What is a good churn rate?
It depends on who your customers are and how they pay. We do not publish a benchmark here. Compare your rate with your own history and look at the trend over several periods.
What if new customers joined and left in the same period?
Leave them out of customers lost. The customer churn rate follows the customers you had at the start of the period.
Work it out from your own data
clariBI connects Stripe and your other business apps. On Starter and up you can ask for churn by month or by plan in plain English; the figures are calculated from your connected data.