ChurnCost.com

Churn Rate Calculator - Monthly and Annual SaaS Churn

Four calculations in one tool: customer churn rate, revenue churn rate, monthly-to-annual conversion, and gross retention. With 2026 benchmarks.

Monthly Customer Churn

3.50%

Annual Equivalent

34.79%

The Four Churn Formulas

Customer (Logo) Churn Rate

Churned Customers / Customers at Start of Period x 100

Use start-of-period count as denominator. Exclude mid-period join-and-churn events.

Revenue (MRR) Churn Rate

Churned MRR / MRR at Start of Period x 100

Churned MRR includes full cancellations and downgrades. Does not include expansion.

Monthly to Annual Conversion

Annual Churn = 1 - (1 - Monthly Rate)^12

Never multiply monthly by 12 - that overstates annual churn significantly.

Gross Revenue Retention

GRR = (Starting MRR - Churned MRR - Downgrade MRR) / Starting MRR

GRR is capped at 100%. It excludes expansion. A good proxy for absolute floor of customer value.

Monthly to Annual Churn Conversion Table

Monthly ChurnAnnual Churn (compounded)
0.5%5.9%
1%11.4%
1.5%16.5%
2%21.5%
2.5%26.2%
3%30.6%
3.5%34.9%
4%38.9%
5%46.1%
6%52.4%
8%63.5%
10%71.8%

Frequently Asked Questions

How to calculate churn rate?+
Customer Churn Rate = (Customers Lost in Period / Customers at Start of Period) x 100. Use start-of-period count as denominator. Exclude customers who joined and left within the same period from both numerator and denominator for accuracy.
What is the difference between monthly and annual churn rate?+
Monthly churn is the percentage of customers lost each month. Annual churn compounds. The correct conversion: Annual Churn = 1 - (1 - Monthly Churn)^12. A 3% monthly churn equals 30.6% annual, not 36%.
What's a good churn rate for SaaS?+
Enterprise SaaS: under 0.5% monthly. Mid-market: 1-2% monthly. SMB: 3-5% monthly. B2C: 6-8% monthly. Based on 2026 Recurly and ProfitWell data.
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