Churn Rate Formula
The Churn Rate Formula measures the percentage of customers or subscribers who stop using a product or service over a given period, providing a critical indicator of customer retention health for your SaaS business.
Formula
Copy the exact expression or work through it step by step below.
Churn Rate = Customers Lost / Starting Customers x 100 Variables
CR
Churn Rate
The churn rate assumption used in the churn rate calculation.
CL
Customers Lost
The customers lost value plugged into the churn rate calculation.
SC
Starting Customers
The starting customers value plugged into the churn rate calculation.
Step By Step
- 1
Set the baseline case with the real calculator inputs.
Active Customers = 1,200, Monthly Churn Percent = 4.00%, Retention Lift Percent = 1.50%, Arpu Monthly = 129
- 2
Translate rates, periods, and cash values onto the same footing before combining them.
Keep the churn rate assumptions consistent instead of mixing monthly and annual views.
- 3
Apply the formula and read the first calculator outputs, not just the headline assumption.
The calculator lands with recovered customers at horizon at 150.35 and improved churn rate at 2.50%.
- 4
Run one changed scenario so the formula is stress-tested before it is trusted.
The churn retention calculator page is the fastest way to compare that second case.
Worked Example
Churn Rate sample case
Active Customers
1,200
Monthly Churn Percent
4.00%
Retention Lift Percent
1.50%
Arpu Monthly
129
Churn Rate = Customers Lost / Starting Customers x 100 using active customers 1,200, monthly churn percent 4.00%, retention lift percent 1.50%, arpu monthly 129.
The calculator lands with recovered customers at horizon at 150.35 and improved churn rate at 2.50%.
Common Variations
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Sources & References
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