Churn rate calculator

Use this churn rate calculator for customer losses, gross and net revenue churn, and net revenue retention. Convert monthly and annual rates with compounding.

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Customer churn is customers lost from the opening group divided by customers at the start. Subtract new customers still present at the end from the ending count to find retained opening customers. Revenue churn uses lost and contracted recurring revenue; net revenue retention also includes expansion from existing customers and excludes new customers.

Customer churn inputs

Enter your own period length: one month for monthly churn or twelve months for annual churn. Counts must be whole numbers. Inputs can be up to one trillion.

Revenue retention inputs

This calculation is independent of the customer fields. Use one currency and the same recurring-revenue basis at both boundaries, such as MRR. Blank loss and expansion fields are excluded as zero.

Currency changes formatting only. It does not convert amounts.

Your result

Enter your figures to calculate a result. No example business values are prefilled.

Customer churn uses the opening cohort, rather than a sum of daily churn rates. Equivalent rates assume constant compounded retention and comparable periods; they are scenarios, not observed annual results. Revenue amounts are recurring revenue at period boundaries for the same opening customers, even for a multi-month period. Exclude new-customer revenue. Net revenue churn and NRR are not extrapolated to annual rates.

Method sources

Sources explain the methods. All business figures come from your inputs; no industry averages are supplied.

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How to use this tool

Use a consistent customer group
Count losses from the opening cohort, supply starting and ending counts plus new customers still present, or convert a known churn percentage. With boundary counts, losses are start plus new customers still present minus end. Customers who joined and left within the period are outside the opening cohort. Customer retention is one minus customer churn.
Compound the churn rate
For a period of m months, equivalent monthly churn = 1 - (1 - period churn)^(1 / m), and annual churn = 1 - (1 - period churn)^(12 / m). Supply one month for monthly inputs or twelve for annual inputs. Conversion assumes constant retention of the remaining cohort, rather than multiplying monthly losses by twelve.
Measure existing-customer revenue
Gross revenue churn divides cancellations plus downgrades by starting recurring revenue. Net churn subtracts expansion from those losses. NRR divides starting revenue minus losses plus expansion by starting revenue. Multiply each fraction by 100. Use only the opening customers and recurring revenue at period boundaries. These revenue rates are not extrapolated to annual rates.

ChartMogul: customer churn definitions

Questions before you start

Lifetime in months is one divided by the equivalent monthly customer churn as a fraction. It assumes a constant churn probability, comparable customers and no change in the business. It is a rough planning estimate. At zero churn there is no finite lifetime estimate; a short zero-churn sample cannot prove customers will stay forever.

Yes. Expansion from existing customers can exceed cancelled and contracted recurring revenue. NRR excludes revenue from new customers, so adding new-customer revenue would overstate retention. Gross revenue churn counts losses before expansion.

Each monthly loss applies to the customers who remain. Annual retention is the monthly retention fraction raised to the twelfth power, and annual churn is one minus that result. The twelve-month scenario shows this compounding from your inputs. It is not an observed annual result or a forecast of new customer growth.

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