AlusLabs

AlusLabs

Churn Rate Calculator

Calculate customer churn, annualized churn, retention rate, and customer half-life. Optionally include revenue churn.

Include revenue churn

Optional: enter MRR data to calculate gross and net revenue churn.

Results

Customer churn rate

5.00%

Benchmark uses monthly-equivalent churn: 5.00%

Annualized churn

45.96%

Retention rate

95.00%

Customer half-life

13.5 months

Tip: share this calculator by copying the URL—your inputs are saved in the query string.

The churn rate calculator gives SaaS companies and subscription businesses a clear picture of customer attrition. Customer churn measures how many subscribers or users you lose over a given period, while revenue churn accounts for the dollar impact — including expansion revenue from upsells. A healthy monthly churn rate for B2B SaaS is typically 2-3%, while B2C products often see 5-7%. This tool calculates both customer and revenue churn, converts between monthly and annual rates, and shows your customer half-life so you can see how long your current base will last at your current retention rate.

How to calculate churn rate

Customer churn rate = (Customers Lost ÷ Customers at Start) × 100 Annualized churn = 1 - (1 - Monthly Churn Rate)^12 Net revenue churn = (MRR Lost - Expansion MRR) ÷ Starting MRR × 100 Example: 25 lost out of 500 = 5% churn for the month = ~46% annualized. Customer half-life = ln(0.5) ÷ ln(1 - 0.05) = ~13.5 months.

FAQ

What is a good churn rate for SaaS?expand_more
A typical benchmark is 2–3% monthly churn for B2B SaaS and 5–7% for B2C subscription products. The right target depends on your market and price point.
What's the difference between gross and net churn?expand_more
Gross revenue churn measures revenue lost from churned customers. Net revenue churn also subtracts expansion revenue from existing customers (upsells).
Can net churn be negative?expand_more
Yes. Negative net revenue churn means expansion revenue exceeds lost revenue. This is a strong indicator of product-market fit.
How do I reduce churn?expand_more
Improve onboarding, drive product engagement, and build proactive support. Operational automation (like renewal reminders and usage alerts) also helps prevent avoidable churn.
What is customer half-life?expand_more
Customer half-life is how long it takes for half of your current customers to churn at your current churn rate. It helps you understand how durable your customer base is.

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