How to Calculate Churn Rate for SaaS: Formula, Benchmarks & Free Calculator

Churn rate formulas

Customer Churn Rate = (Customers Lost in Period / Customers at Start of Period) x 100. Revenue Churn Rate = (MRR Lost in Period / MRR at Start of Period) x 100.

Revenue churn is more important than customer churn because losing a $200/month customer hurts more than losing a $20/month customer. Track both but prioritize revenue churn.

• Good monthly churn: under 3% for SMB SaaS, under 1% for enterprise
• Net revenue churn: can be negative if expansion revenue exceeds churned revenue
• Voluntary churn: customers who choose to cancel
• Involuntary churn: failed payments, expired cards — often 20-40% of total churn

Churn benchmarks

For micro SaaS targeting SMBs, 3-5% monthly churn is typical. For products with strong retention (vertical SaaS, tools with switching costs), under 2% is achievable.

Use TrustMRR in BigIdeasDB to see churn benchmarks for products in your category.

Using the BigIdeasDB Churn Calculator

Navigate to Free Tools > Churn Rate Calculator. Input your customer or revenue figures. The calculator shows your churn rate, annual impact, and projected customer base over time.

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