Churn Rate Calculator
Calculate your monthly churn rate, annualized churn, and customer half-life in seconds.
Understanding your churn rate is fundamental to SaaS success. This calculator takes your customer counts over any period and derives your monthly churn rate, annualized churn rate, and customer half-life — the time it takes to lose half your customer base at the current rate. Use it to benchmark against industry standards and set reduction targets.
Your Numbers
Total active paying customers at the beginning of the period.
Number of customers who cancelled or did not renew during the period.
How many months does this data span? Use 1 for a single month.
Results
Monthly Churn Rate
5.00%
Annual Churn Rate
45.96%
Customer Half-Life
13.5 months
Customers Remaining After 12 Months
540
Formula
Monthly Churn = (Customers Lost / Period Months) / Customers at Start x 100
The monthly churn rate divides total customers lost by the number of months to get average monthly losses, then expresses that as a percentage of starting customers. The annual churn rate uses the compounding formula: 1 - (1 - monthly rate)^12. Customer half-life is calculated as ln(0.5) / ln(1 - monthly rate), showing how many months until half your base churns at the current rate.
How to Interpret Your Results
Under 2% monthly
Your retention is strong. Focus on expansion revenue and reducing involuntary churn to push toward net negative churn.
2-5% monthly
Typical for SMB SaaS. There is meaningful room to improve. Investigate how much is involuntary vs. voluntary churn.
5-8% monthly
Your customer half-life is short. Prioritize churn reduction — it is likely the highest-leverage growth activity.
Over 8% monthly
At this rate, you replace your entire customer base within a year. Urgent action needed on product-market fit, onboarding, and payment recovery.
Industry Benchmarks
| Segment | Benchmark | Context |
|---|---|---|
| Enterprise SaaS (ACV > $50K) | 0.5-1% monthly | Long contracts and high switching costs keep enterprise churn low. |
| Mid-Market SaaS ($5K-$50K ACV) | 1-2% monthly | Balance of contract terms and competitive market drives moderate churn. |
| SMB SaaS (< $5K ACV) | 3-5% monthly | Small businesses churn more due to budget constraints and lower switching costs. |
| Consumer / B2C SaaS | 5-8% monthly | High churn is normal in consumer subscriptions. Payment failures account for a large share. |
| Early Stage (pre-PMF) | 8-15% monthly | High churn before product-market fit is expected. Focus on learning, not just reducing the number. |
How Rezoki Can Improve These Numbers
Rezoki is an AI-powered revenue recovery platform purpose-built for SaaS. It combines smart payment retries (timed for maximum approval rates), personalized dunning email sequences, and AI voice calls to recover failed payments before they become permanent churn.
- ✓Average 70% recovery rate across all customers
- ✓5-minute integration with Stripe — no engineering needed
- ✓Uses your own SMTP for zero-cost email delivery
- ✓AI voice calls for high-value invoices that need a personal touch
Related Tools
Involuntary Churn Cost Calculator
Find out how much involuntary churn from payment failures really costs.
SaaS Churn Benchmark Checker
Compare your churn rate against industry benchmarks.
Customer Lifetime Value Calculator
Calculate customer LTV, lifespan, and LTV:CAC ratio.
Annual Revenue Impact Calculator
Project ARR over 12 months factoring in churn and expansion.