Churn Rate Calculator
Measure customer or revenue churn, retention and the average customer lifetime it implies.
Quick answer
Customer churn rate is customers lost in a period divided by customers at the start of the period. Implied average customer lifetime is 1 / churn rate, assuming churn stays constant.
Churn Rate Calculator
Churn Rate
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Retention Rate
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Implied Lifetime
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Annualised Churn
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Gross Revenue Retention
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Net Revenue Retention
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Churn Sensitivity
| Churn per period | Retained after 1 year | Lifetime (periods) | Lifetime (months) |
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Assumptions & method
- Customer churn = customers lost ÷ customers at start. New customers gained are not part of the denominator.
- Revenue mode: gross revenue churn = (churned + contraction MRR) ÷ starting MRR; GRR = 1 − that; NRR = (starting − churned − contraction + expansion) ÷ starting.
- Implied lifetime = 1 ÷ churn rate per period, assuming the rate is constant. It is infinite at zero churn.
- Annualised churn = 1 − (1 − churn)^(12 ÷ months per period); the same rate is assumed to repeat.
- Not included: cohort effects (churn is usually higher early), reactivations, free users and seasonality.
Results are estimates based on the figures you enter. They are not guarantees and not financial advice.
What churn tells you
Churn measures how much of your base you lose in a period. Customer churn counts accounts that left, while revenue churn counts the recurring revenue that disappeared, including downgrades. Retention is simply one minus churn. Because a constant churn rate means the average customer lasts one divided by the rate, small changes in churn have a large effect on lifetime and lifetime value. Revenue mode adds expansion, which lets you compute gross revenue retention, where only losses count, and net revenue retention, where upgrades from existing customers offset those losses. Use consistent periods so rates can be compared month to month.