Customers
Revenue (optional)
$
$
Your numbers
Monthly churn
5.0%
Retention rate
95.0%
Annualized churn
46%
Revenue churn
5.0%
Moderate churn (5.0%/mo).
Workable, but worth investigating why customers leave — onboarding, pricing fit, or a missing feature are the usual suspects.
How it's calculated
Churn rate = customers lost ÷ customers at start
Worked example
200 customers at the start of the month, 10 cancel: churn = 10 ÷ 200 = 5% monthly, retention = 95%. Compounded over a year, that's 1 − (1 − 0.05)¹² ≈ 46% annualized — not 60%.
Churn vs. retention
Retention rate is just 100% minus churn — the same underlying number, framed the other way round. Both are worth tracking side by side since stakeholders often respond differently to "95% retention" than "5% churn," even though they're identical.
FAQ
Common questions about churn rate
Related free tools: