Churn Rate Calculator
To find the churn rate (CR), divide the number of lost customers (CL) by the total number of customers (TC), then multiply by 100.
Keeping customers is just as important as gaining new ones. The churn rate tells businesses how many customers cancel subscriptions or stop buying over a period. A churn rate calculator helps track customer retention and identify areas for improvement.
Businesses, especially in SaaS, telecom, and subscription-based services, use a churn rate calculator in Excel or a monthly churn rate calculator to monitor customer loss. If you’re running a subscription service, a SaaS churn calculation can help you see how well you’re retaining customers.
Formula:
The formula to calculate churn rate is:
| Symbol | Meaning |
|---|---|
| CR | Churn Rate (%) |
| CL | Number of Lost Customers |
| TC | Total Customers at the Start of the Period |
What is Churn Rate?
Churn rate is the percentage of customers who leave a business over a given time. A high churn rate means a company is losing customers quickly, while a low churn rate means customers are staying longer.
For example, a MRR churn rate calculator helps SaaS companies measure lost revenue from cancellations. Businesses also compare churn rate vs. retention rate, since high retention means low churn.
If you’re asking what is a good churn rate, it depends on the industry. For SaaS businesses, a churn rate under 5% per month is considered reasonable, while for telecom and streaming services, it varies.
Final Words:
All in all, tracking churn rate helps businesses understand customer retention and improve loyalty. Using a churn rate calculator makes it easy to measure and reduce customer loss.
FAQs:
1. How do you calculate churn rate?
Divide lost customers (CL) by total customers (TC) and multiply by 100: CR = (CL / TC) × 100.
2. What is a good churn rate?
A good churn rate depends on the industry, but for SaaS, under 5% per month is acceptable.
3. How to calculate net churn rate?
Net churn rate considers lost customers minus new customers gained to give a more accurate retention measure.