Churn Rate Calculator

Customer churn rate = (Customers at Start + New Customers - Customers at End) / Customers at Start x 100. For example, if you started with 1,000 customers, gained 100 new ones, and ended with 950, your churn is (1000 + 100 - 950) / 1000 x 100 = 15%. This means 150 customers left during the period.

For SaaS companies, under 2% monthly churn (about 22% annually) is considered healthy. Enterprise SaaS targets under 1% monthly. E-commerce and consumer subscriptions may see 5-8% monthly. The "best in class" SaaS companies achieve negative net revenue churn, meaning expansion revenue from existing customers exceeds lost revenue from churned ones.

Customer churn counts how many customers left. Revenue churn measures how much revenue was lost. They often differ because not all customers pay the same amount. Losing 10 small customers may have less revenue impact than losing 2 enterprise accounts. Revenue churn is often more important for business planning since it directly impacts your bottom line.

Annual churn is not simply monthly churn x 12. The correct formula is: Annual Churn = 1 - (1 - Monthly Churn Rate)^12. For example, 5% monthly churn equals 46% annual churn (not 60%). This accounts for the compounding effect: each month you lose customers from an already-shrinking base.

Dewx GTM Hub tracks churn metrics in real-time and uses AI to identify at-risk customers before they leave. It monitors engagement signals, health scores, and support ticket patterns. When risk is detected, Dew AI triggers automated retention workflows: personalized outreach, special offers, or customer success check-ins.