Annualized churn converts monthly churn into a rough yearly churn estimate. Customer churn counts logos; revenue churn measures lost MRR.
Customer churn counts lost customers. Revenue churn measures lost recurring revenue. Annualized churn approximates the yearly impact of a monthly churn rate.
How this calculator works
This churn rate calculator is designed for SaaS, subscription, and recurring-revenue businesses. Enter your current operating numbers to get a fast directional result.
Customer churn rate = lost customers ÷ starting customers × 100
Keep the reporting period consistent. Monthly metrics should use monthly revenue, monthly churn, and monthly acquisition counts.
How to use it
- Use clean finance or analytics data from the same period.
- Exclude one-time revenue when calculating recurring revenue metrics.
- Compare the result against prior months to see trend direction, not just one snapshot.
Result interpretation
Customer churn shows logo loss, while revenue churn shows dollar loss. Revenue churn is often more important when large accounts carry more MRR.
FAQ
What is churn rate?
Churn rate shows the share of customers or revenue lost during a period.
Should new customers be included?
For basic churn, compare lost customers against customers at the start of the period.
How should I use this result?
Use it as a quick operating metric, then compare it with cohort trends, cash flow, pricing changes, and acquisition channel quality.
Is this calculator exact accounting?
No. It is a planning calculator. Use consistent definitions from your finance reports when making board or investor decisions.