Free tool

Churn rate calculator

Measure your churn rate, retention rate and estimate the financial impact of lost customers on your recurring revenue.

Parameters

Enter your data to calculate churn.

Total active customers at the beginning of the period.

Number of customers who churned during the period.

Average monthly revenue generated per customer (ARPU).

Enter your data and click Calculate to see your results.

Understand

Understanding churn rate

1

Churn definition

Churn rate measures the percentage of customers who stop buying from or using your service over a given period. It is the inverse of retention.

2

Industry benchmarks

Healthy monthly churn sits between 2% and 5% for B2B SaaS, 3% to 7% for e-commerce, and 5% to 10% for B2C subscription. Beyond that, growth becomes very expensive.

3

Impact on LTV

Churn directly determines customer lifespan. A 5% monthly churn means an average 20-month lifespan. Reducing churn by 1% can increase LTV by 25%.

4

Reduction levers

Thoughtful onboarding, loyalty programs, re-engagement emails, responsive support, and continuous product improvement are the most effective levers to reduce churn.

FAQ

Frequently asked questions

How do you calculate churn rate?+

Churn rate = (Customers lost / Customers at start of period) * 100. For example, if you had 1000 customers and lost 50, your churn is 5%.

What is a good churn rate?+

In e-commerce, a monthly churn between 3% and 7% is considered healthy. In B2B SaaS, aim to stay below 2% per month. Benchmarks vary by sector and business model.

What is the difference between churn and retention?+

They are two sides of the same metric: Retention = 100% - Churn. If your churn is 5%, your retention is 95%.

Should I calculate churn by revenue or by customers?+

Both are useful. Customer churn measures disengagement; revenue churn measures financial impact and can be negative if remaining customers increase their spending.

How do you reduce churn effectively?+

Identify disengagement signals early, automate reactivation campaigns, improve product experience, and offer responsive support. RFM segmentation helps prioritize actions.

How does Fullmetrix track churn?+

Fullmetrix automatically calculates your churn rate by cohort, acquisition channel and RFM segment to identify at-risk profiles and optimize retention.

Track churn automatically

Fullmetrix calculates your churn by cohort and segment to anticipate departures.

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