SaaS Churn Rate Calculator
Calculate logo churn and revenue churn for your SaaS — the two metrics that determine whether growth is real or an illusion.
Revenue churn matters more than logo churn: losing 10 tiny accounts hurts less than losing 1 enterprise account. Track both, optimise revenue churn.
Comprehensive Guide & Formulas
Logo & revenue churn
Key Takeaways & Benchmarks
- ✓Logo churn = customers lost ÷ starting customers; revenue churn = MRR lost ÷ starting MRR.
- ✓Revenue churn drives valuation more than logo churn.
- ✓Average lifetime ≈ 1 ÷ churn rate — halving churn roughly doubles LTV.
- ✓Net revenue retention above 100% means the base grows itself.
- ✓Early churn is an onboarding problem; fix time-to-value first.
How churn math works
Churn measures what leaks out of the bucket while you're pouring new customers in. Logo churn tracks customer count: (start + new − end) ÷ start. Revenue churn tracks dollars: MRR lost ÷ starting MRR. A business can grow customer count while revenue churn quietly hollows out the economics — which is why both numbers matter.
The derived metrics tell the strategic story. Customer lifetime is roughly 1 ÷ churn rate, feeding directly into lifetime value. Net revenue retention above 100% means the existing base grows on its own — the single most prized metric in SaaS.
- 1Enter customer counts
Start, end and newly added customers for the period.
- 2Add MRR figures
Starting MRR and MRR lost to churn and downgrades.
- 3Read both churn rates
Logo churn, revenue churn and retention.
- 4Act on the leak
Onboarding, health scores and annual plans move these numbers.
The formulas
Worked example
Start: 1,200 customers and $60,000 MRR. Add 150, end at 1,150: 200 customers churned, a 16.7% logo churn rate. MRR lost of $4,000 on $60,000 starting MRR is 6.7% revenue churn — much healthier than the logo number suggests, because the churned accounts were smaller than average.
At 16.7% period churn, implied average lifetime is about 6 periods. Cut churn to 8% and lifetime doubles — and with it, the lifetime value that justifies your acquisition spend.
Plugging the leak
- ▸Fix onboarding first — early churn is a time-to-value problem.
- ▸Push annual plans; they structurally reduce churn versus monthly billing.
- ▸Build expansion revenue (upsells) to offset gross churn in net retention.
- ▸Interview churned customers; reasons cluster into fixable themes.
- ▸Model the LTV impact of churn changes with the SaaS Pricing Calculator.
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Frequently asked questions
How do you calculate churn rate?+
Logo churn = customers lost ÷ customers at start of period. If you began with 1,200 customers, added 150 and ended with 1,150, you lost 200 — a 16.7% churn rate. Revenue churn = MRR lost ÷ starting MRR. This calculator computes both from your numbers.
What is the difference between logo churn and revenue churn?+
Logo churn counts customers; revenue churn counts dollars. Losing 10 small accounts (high logo churn) may barely dent revenue, while losing one enterprise account (low logo churn) can crater it. Revenue churn drives valuation — investors care far more about dollars retained than logos retained.
What is a good churn rate for SaaS?+
It depends on segment: enterprise SaaS often runs 5–7% annual logo churn; SMB SaaS commonly sees 3–5% monthly; consumer subscriptions can exceed 5% monthly. Rather than chasing a universal benchmark, watch your own trend and cohort behaviour — rising churn in new cohorts signals a product or onboarding problem.
What is net revenue retention?+
Starting MRR, minus churned and downgraded MRR, plus expansion MRR from upsells — expressed as a percentage of starting MRR. Above 100% means existing customers grow revenue faster than churn shrinks it: the hallmark of best-in-class SaaS. It's shown in the results as the complement of revenue churn.
How does churn affect customer lifetime value?+
Average lifetime ≈ 1 ÷ churn rate. At 5% monthly churn, average lifetime is 20 months; at 2%, it's 50 months. Since LTV = ARPA × gross margin × lifetime, halving churn roughly doubles LTV — which is why retention work usually beats acquisition work on ROI. The CAC Payback Calculator shows the other half of that equation.
Why is my churn high in the first 90 days?+
Early churn is almost always an onboarding problem, not a product problem: customers who never reach the 'aha moment' leave quickly. Track time-to-value obsessively, fix the first-run experience, and consider concierge onboarding for high-value accounts. Cohorts should stabilise after month three — if they don't, dig deeper.
Should I count downgrades as churn?+
In revenue churn, yes — contraction is churn in dollar terms. In logo churn, no — the customer stayed. Report both: gross revenue churn (cancellations + downgrades) shows the full leakage, while net revenue retention shows whether expansion offsets it.
How do I reduce SaaS churn?+
The highest-leverage moves: fix onboarding so new users reach value fast, instrument health scores to catch at-risk accounts early, and build annual plans (annual billing typically cuts churn dramatically versus monthly). Then talk to every churned customer — the reasons cluster, and each cluster is a roadmap item.
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