Churn rate calculator
Churn rate is the share of customers who cancel in a period: customers lost ÷ customers at the start × 100. Enter your numbers to get customer churn, revenue churn, monthly and annual churn, and average customer lifetime.
Optional: revenue churn
Customer churn rate this month
5.0%
- Monthly churn
- 5.0%
- Annual churn (compounded)
- 46.0%
- Average customer lifetime
- 20.0 months
Atlis flags users who are going quiet or visiting your cancel page, and emails them before they cancel. Failed payments get a recovery email automatically from Stripe or Paddle.
Reduce churn with AtlisHow churn rate is calculated
Customer churn = customers who cancelled ÷ customers at the start of the period.
Revenue churn = MRR lost to cancellations and downgrades ÷ MRR at the start of the period.
Monthly churn from a longer period = 1 − (1 − period churn)^(1 ÷ months).
Annual churn = 1 − (1 − monthly churn)^12.
Average customer lifetime ≈ 1 ÷ monthly churn, in months.
Questions
How do you calculate churn rate?
Divide the number of customers who cancelled during a period by the number of customers you had at the start of that period, then multiply by 100. 10 cancellations from 200 starting customers is a 5% churn rate for that period.
What's the difference between customer churn and revenue churn?
Customer churn counts accounts that left. Revenue (MRR) churn measures the monthly recurring revenue those cancellations and downgrades removed, divided by MRR at the start. If larger customers leave, revenue churn is higher than customer churn.
How do I turn monthly churn into annual churn?
Churn compounds, so annual churn isn't monthly churn times 12. It's 1 − (1 − monthly churn)^12. A 5% monthly churn rate is about 46% a year.
How is average customer lifetime calculated?
A common approximation is 1 divided by the monthly churn rate. At 5% monthly churn, the average customer stays about 20 months.
Should new customers who joined during the month be counted?
Not in this basic formula. Use the customers you had at the start of the period, and count only cancellations from that group, so new signups don't hide churn.
Related: failed payment email template, cancel page save email, dunning email generator and how Atlis reduces churn.