Free Churn Rate Calculator

Enter your subscriber numbers to instantly see your monthly and annual churn rates with industry benchmarks.

Your Data

Customers at Start of Period

Customers Lost During Period

Period Length

months

How many months does this data cover? (1–12)

Key Takeaways

Churn rate means very little without the period attached. Stripe puts SaaS at 38% churn, which reads as alarming until you notice it's annual and measured on monthly-billed subscriptions only (Stripe Churn Benchmarks, 2025).
Price point moves churn far more than industry does. Subscriptions under $10 average order value churn at 40% a year against 15% above $10,000 (Stripe Churn Benchmarks, 2025), while the spread across verticals runs a much narrower 28% to 43%.
Separate voluntary from involuntary churn before trying to fix either. Involuntary failures are 35% of all churn under $10 average order value and 15% in the $1,000-$10,000 band (Stripe Churn Benchmarks, 2025), and those are a billing problem rather than a product one.

Monthly Churn Rate Benchmarks

Range	Monthly Churn
Excellent	0–2%
Average	2–5%
High	5%+

What Is Churn Rate?

Churn rate is the share of customers or subscriptions you lose over a period, as a percentage of what you started with. It's the mirror image of retention rate and the two are usually quoted together.

The word does a lot of work without much precision. The same term covers monthly and annual measurement, customer counts and revenue, deliberate cancellations and failed payments. A churn figure with none of that attached is close to meaningless, which is why published benchmarks disagree with each other far less than they first appear to.

How to Calculate Churn Rate

The formula is (Customers Lost ÷ Customers at Start of Period) × 100. Begin January with 1,000 subscribers and lose 50, and monthly churn is 50 ÷ 1,000 × 100 = 5%. Customers who both joined and left inside the same period are usually excluded, so that the denominator stays a fixed group.

Annualizing is not multiplication. Annual churn is 1 − (1 − monthly rate)^12, so 5% a month compounds to roughly 46% over a year rather than 60%, because every month's loss applies to a base the month before already reduced. The calculator above reports both, which is what lets you compare against an annual benchmark without converting anything yourself.

What's a Good Churn Rate?

There's no single answer, and the measurement period matters more than the industry does. On an annual basis the spread across verticals is narrower than most people expect: travel and lodging 43%, business services and education 40%, merchandise 39%, SaaS and digital goods 38%, insurance 37%, leisure 36%, furniture 28% (Stripe Churn Benchmarks, 2025). Fifteen points separates the highest vertical from the lowest.

Price point moves it much further. Median annual customer retention runs 54% for businesses under $25 average revenue per account and 79% above $1,000 (ChartMogul SaaS Benchmarks, 2023), which is 46% against 21% annual churn reading the same table the other way. Across the six bands the median annual churn runs 46% under $25, 34% at $25-100, 28% at $100-250, 27% at $250-500, 23% at $500-1k and 21% above $1k (ChartMogul SaaS Benchmarks, 2023). Median performance at a low price point carries more than double the annual churn of median performance at a high one, so find your own band before comparing against anything else.

How to Reduce Your Churn Rate

Separate the two causes first, because the fixes have nothing in common. Failed payments are an infrastructure problem, handled in your payment processor and your dunning setup. Deliberate cancellations are a product and value problem, and they move much more slowly.

The split between them isn't even across price points. Involuntary failures make up 35% of all churn for subscriptions under $10 average order value, fall to 15% in the $1,000-$10,000 band, then rise again to 24% above $10,000 (Stripe Churn Benchmarks, 2025). At a low price point roughly a third of what looks like churn is a billing failure, which is the cheapest churn you will ever fix and the first place worth looking.

Churn Rate Calculator FAQ

Customer churn counts subscribers and revenue churn counts money. The two diverge as soon as your customers aren't all worth the same, since losing ten small accounts and losing one large one can produce identical customer churn and very different revenue churn. Most subscription businesses report both, because customer churn is a product and support signal while revenue churn is a planning signal.

Monthly if you bill monthly, annually if you bill annually, and label whichever you publish. The two are related by compounding rather than multiplication: 5% churn per month is roughly 46% per year, not 60%. Most confusion about churn benchmarks turns out to be a period mismatch. Stripe's 38% SaaS figure and a 3-4% monthly figure describe much the same world (Stripe Churn Benchmarks, 2025).

No, and that's deliberate. Customers who both joined and left inside the same period are conventionally excluded so the denominator stays a fixed group rather than a moving one. Including them makes a fast-growing month look artificially healthy, because the denominator grows faster than the losses do.

Directly, through average customer lifetime. At a steady rate the average subscriber stays 1 ÷ churn months, so 5% per month means 20 months and 3% per month means about 33. That difference flows straight into lifetime value and into how much you can afford to spend acquiring a customer, which is why a single point of churn is worth more than it looks.

It depends entirely on what you charge, which is why a single threshold misleads. Median annual customer churn is 46% under $25 average revenue per account and 21% above $1,000 (ChartMogul SaaS Benchmarks, 2023), so the same number can be ordinary in one band and alarming in another. The more useful warning sign is direction: churn rising while your pricing and product are unchanged is worth acting on at any level.