MySaasWorth

Churn Calculator

Churn Calculator

Calculate monthly churn rate, customers lost, and retention impact. Free SaaS churn calculator for founders.

For demonstration purposes only. Estimates are illustrative and do not represent a formal valuation.

How it works

What is the Churn Calculator?

Churn measures the percentage of customers or revenue you lose each month. It's one of the most important levers for LTV, growth, and valuation.

Formula

Monthly Churn % = (Customers Lost / Starting Customers) Γ— 100

Divide customers lost in a month by starting customers. Customer lifetime in months β‰ˆ 1 Γ· churn rate.

Worked example

Inputs: 1,000 customers start Β· 50 churned this month

  1. Churn = 50 / 1,000 = 5%
  2. Avg lifetime β‰ˆ 1 / 0.05 = 20 months

Monthly churn = 5%

Benefits & benchmarks

  • < 3% monthly churn is strong for SMB SaaS
  • > 5% monthly churn compresses valuation multiples

Frequently asked questions

What is a good SaaS churn rate?+

For SMB SaaS, under 3–5% monthly is often acceptable early; enterprise targets are much lower.

How does churn affect LTV?+

Higher churn shortens customer lifetime, directly reducing LTV.