Churn rate calculator

Choose customers or recurring revenue and enter three values for the same period.

What to measure
Customers at start
New customers
Customers at end

Customer churn

10%

Customers lost100
Retention90 %
Net growth-3 %

Contents

How the churn calculator works

A starting group gains two members and loses one before the ending count

Churn rate measures what share of the starting customer base or recurring revenue was lost during a period. Select customers for gross customer churn or recurring revenue for net revenue churn.

Use one period and one definition

Enter the number at the start, the new customers acquired during the period, and the ending number. The calculator subtracts new customers from the ending total to estimate how many of the starting group remained.

rC=C0+Aโˆ’C1C0ร—100%r_C=\frac{C_0+A-C_1}{C_0}\times100\%

Here C0C_0 is the starting count, AA new customers, and C1C_1 the ending count. This aggregate formula assumes that newly acquired customers did not also leave within the same period. If they did, use cohort-level events instead.

Revenue mode applies the same arithmetic to recurring revenue, but it measures a net change. Upsells and expansion among existing accounts can offset cancellations and downgrades, producing a negative net churn rate. All three amounts must use the same currency; no conversion is performed.

rR=R0+Nโˆ’R1R0ร—100%r_R=\frac{R_0+N-R_1}{R_0}\times100\%

R0R_0 is starting recurring revenue, NN revenue from new accounts, and R1R_1 the ending total. This is not gross revenue churn, which requires separate loss data.

Three different stories behind the totals

Customers decline: start with 1,000, add 70, finish with 970. The estimated loss is 100; customer churn is 10%, retention 90%, and net customer growth -3%. Acquisition masked much of the loss.

Customers grow despite churn: 500 at the start, 100 new, 575 at the end. Twenty-five of the starting customers left, so churn is 5% even though the overall base grew 15%.

Expansion beats revenue loss: start with 2,000,000 in recurring revenue, add 200,000 from new accounts, and finish at 2,300,000. Net revenue churn is -5%; the starting accounts generate 5% more than before after all changes.

Do not compare unlike periods

A monthly 5% rate and an annual 5% rate describe different speeds of loss. Keep the period, active-customer definition and revenue basis consistent. A negative customer loss is rejected because it points to uncounted reactivations or incompatible totals; negative net revenue churn is valid.

Customer counts must be whole numbers up to 1,000,000,000. Revenue amounts may be decimal but cannot be negative; the starting value must be positive. Percentages are displayed to two decimals while the calculation uses the entered figures. Churn identifies the size of a loss, not why customers left.

Questions before acting on churn

The number is a starting point for investigation. Its usefulness depends on which customers and payments were counted.

Do new customers cancel out churn?

No. They can increase the ending base, but gross customer churn is measured against customers present at the start.

Why can net revenue churn be negative?

Expansion and upsells among existing accounts can exceed cancellations and downgrades.

Can I calculate churn weekly?

Yes, if weekly periods match your product and reporting. Compare it with other weekly periods, not an annual rate.

What if a newly acquired customer leaves immediately?

The three totals cannot separate that loss from churn in the starting cohort. Use customer-level events or a cohort report.

Is there a universally good churn rate?

No. Evaluate it against period length, customer segment, price model and your own trend.

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Calcopedia (en) โ†’ Churn rate