Free SaaS Churn Rate Calculator

Quick answer

Customer churn rate measures the share of starting customers who cancel during a period. Monthly churn should be calculated against customers at the start of the month, not against a denominator inflated by new customers added later.

Formula

Customer churn rate = customers lost during period ÷ customers at start of period × 100

Example

Losing 40 customers from a starting base of 1,000 produces 4% monthly customer churn.

How to interpret it

Segment churn by plan, acquisition source, customer age, and activation behavior before deciding what to fix.

Methodology, assumptions and limitations