Free Tool · B2B SaaS

Churn Rate Calculator for B2B SaaS

Get your customer churn rate, retention rate, average customer lifespan and revenue (MRR) churn from a few numbers. Transparent formula, no email.

Your churn & retention
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Customer churn rate
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Retention rate
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Avg lifespan (periods)
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Revenue churn rate
Enter customers at the start and customers lost to see your churn and retention.
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What is churn rate?

Churn rate is the percentage of customers (or revenue) you lose over a period. It is the quiet killer of SaaS growth: every point of churn is a customer your acquisition engine has to replace before you grow at all. Because average customer lifespan is 1 divided by churn, small changes in churn have outsized effects on lifetime value.

How this calculator works

The formula:

Customer churn rate = customers lost ÷ customers at start
Retention rate      = 1 − customer churn rate
Avg lifespan        = 1 ÷ churn rate   (in the same period)
Revenue churn rate  = MRR churned ÷ MRR at start

Match the period to how you report: a 3% monthly churn is very different from 3% annual. Lifespan comes out in the same unit as your churn period.

What is a good churn rate for B2B SaaS?

SegmentHealthy monthly churn
EnterpriseUnder 1%
Mid-market1 to 2%
SMB / self-serve3 to 5%

Revenue churn can go negative when expansion from existing customers outweighs losses, which is the hallmark of a great SaaS business.

How to reduce churn

  • Acquire better-fit customers. ICP-aligned accounts from organic search retain far better than discount-driven or poorly-targeted paid signups.
  • Nail onboarding and time-to-value. Most churn is decided in the first 90 days.
  • Drive product adoption. Usage of core features is the strongest retention predictor.
  • Build expansion paths. Upsells and seat growth turn revenue churn negative.

Frequently asked questions

How do you calculate churn rate?

Customer churn rate = customers lost during a period ÷ customers at the start, times 100. Losing 15 of 500 customers in a month is 3% monthly churn. Revenue churn applies the same formula to MRR.

What is a good churn rate for B2B SaaS?

Roughly 1% monthly or lower is healthy (about 5 to 7% annually). SMB products run higher (3 to 5% monthly); enterprise should be well under 1%. Revenue churn can go negative with strong expansion.

What is the difference between customer churn and revenue churn?

Customer churn counts logos lost; revenue churn counts dollars lost. Revenue churn matters more because losing a few large accounts can outweigh many small ones. Net revenue retention accounts for expansion that offsets churn.

How does churn affect lifetime value?

Average lifespan is 1 ÷ churn, so churn is the biggest driver of LTV. Cutting monthly churn from 4% to 2% doubles lifespan (25 to 50 months) and doubles LTV with no pricing change.