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Fifteen accounts leave a base of 250
You start the month with 250 customers and 30,000 of MRR. Fifteen accounts leave, taking 1,800 of MRR. Twenty-two new customers join.
Customers at the start: 25% lower
Change customers at the start to 188 customers while keeping the other example values the same.
Customers at the start: 25% higher
Change customers at the start to 313 customers while keeping the other example values the same.
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Quick answer
What does the Customer churn rate calculate?
What share of starting customers and recurring revenue left in the period? This calculator uses customers at the start, customers lost, new customers, starting monthly recurring revenue, and churned mrr to estimate share of customers and revenue that left immediately in your browser.
With the values currently entered, the result is 6% — customer churn rate. It also shows revenue churn rate, ending customers, and net customer change.
How to use the Customer churn rate
- Replace the example values with your own numbers.
- Review the result and supporting figures as they update automatically.
- Check the formula and assumptions before using the estimate for a decision.
Inputs used
- Customers at the start — entered in customers
- Customers lost — entered in customers
- New customers — entered in customers
- Starting monthly recurring revenue
- Churned MRR
Customer churn rate formula
Customer churn = customers lost ÷ starting customers. Revenue churn = churned MRR ÷ starting MRR.
Assumptions
- Use one period you choose, such as a month or a quarter, and keep every input on that same period.
- A lost customer here is one that ended the recurring relationship. Pauses, downgrades, and cohort timing stay out unless you put them in the numbers.
Verify the inputs
Authoritative sources
These sources explain the definitions, factors, or rules behind this tool. Their geographic scope is shown because an official source for one country is not automatically valid somewhere else.
SBA planning pages treat revenue, customers, and cash as figures you track on a period you choose. Recurring-revenue and churn ratios on this site use the amounts you type for that period.
Profitability and the profit and loss statementFDIC Money Smart for Small BusinessScope: US small-business education; method is generalWrites the P&L as revenue − COGS = gross profit, then − overhead = operating profit, then − income tax = net profit. Profit margin is net profit ÷ revenue.
Sources do not endorse Calculum. Check the source date, scope, and your own documents before making a financial, tax, insurance, or reporting decision.
Practical guide
Customer churn rate example and edge cases
Churn is the share that left. Customer churn divides lost accounts by the opening count. Revenue churn divides lost recurring revenue by starting MRR. Keep every input on the same period.
Example: Fifteen accounts leave a base of 250
You start the month with 250 customers and 30,000 of MRR. Fifteen accounts leave, taking 1,800 of MRR. Twenty-two new customers join.
- Customers at the start
- 250 customers
- Customers lost
- 15 customers
- New customers
- 22 customers
- Starting monthly recurring revenue
- 30,000
- Churned MRR
- 1,800
Calculated result6%customer churn rate
Customer churn is 6 percent. Revenue churn is also 6 percent here because the accounts that left matched the average size. Ending headcount is 257 after the 22 joins.
Example results use the default display profile. The calculator above follows your selected country and units.
How to read the result
- Read customer churn first. Then check revenue churn. They drift apart when larger accounts leave.
- New customers do not lower the churn rate. They change the ending count. The rate still uses the opening base.
Edge cases worth checking
You pause accounts instead of cancelling them
Decide one rule and keep it. If a pause still has a contract, leave that customer in the starting count. If the pause ends billing, treat it as lost.
The period is a year and you also quote a monthly rate
Do not divide a yearly 24 percent by 12 and call it 2 percent a month. Compounding does not work that way. Run the month and the year as two separate periods.
What changes the result most
Customers at the start
Measure customers at the start with the same unit shown beside the input. Convert first if your source uses another unit.
Customers lost
Measure customers lost with the same unit shown beside the input. Convert first if your source uses another unit.
New customers
Measure new customers with the same unit shown beside the input. Convert first if your source uses another unit.
Try a different scenario
Small changes show whether the answer is stable or sensitive.
Customers at the start: 25% lower
188 customers8%customer churn rate
Customers at the start: 25% higher
313 customers4.8%customer churn rate
Customers lost: 25% higher
19 customers7.6%customer churn rate
Common mistakes
Check customers at the start
Use one period you choose, such as a month or a quarter, and keep every input on that same period. Make sure this matches the number you enter.
Keep churned mrr consistent
A lost customer here is one that ended the recurring relationship. Pauses, downgrades, and cohort timing stay out unless you put them in the numbers. Use the same units and time period throughout the calculation.
Do not rely on one customer churn rate scenario
Run a cautious case and an optimistic case. The range is often more useful than one exact-looking number.
Use this result well
What share of starting customers and recurring revenue left in the period?
It does not replace a quote, contract, accountant, or local employment guidance.