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.
Key takeaways
- Monthly churn rate = customers lost in the month ÷ customers at the start of the month.
- Annual churn = 1 − (1 − monthly churn)^12, not monthly × 12: 2% monthly is 21.5% a year, 5% monthly is 46%.
- Retention is the mirror image: 5% monthly churn means 95% of customers stay each month.
- Lower churn raises lifetime value directly — halving churn doubles average customer lifetime.
Run more than one SaaS or product? Hustlay gives each one its own MRR and profit view.
See profit per productHow 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
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