Churn Rate Calculator: calculate churn rate for your business. Formula, benchmarks, and practical tips included.
Monthly churn % = (Customers lost ÷ Starting customers) × 100. Annual churn % = (1 − (1 − Monthly churn ÷ 100)^12) × 100 — not simply 12× monthly, because it compounds.
Customer lifetime (months) = 1 ÷ (Monthly churn ÷ 100). LTV = ARPU × Customer lifetime. MRR lost = Churned customers × ARPU. Net new MRR = (New customers − Churned) × ARPU.
Worked example: 500 customers, 25 churned, £49 ARPU, 40 new customers. Monthly churn = 25 ÷ 500 × 100 = 5%. Annual churn = (1 − 0.95^12) × 100 = 46%. MRR lost = 25 × £49 = £1,225. Net new MRR = (40 − 25) × £49 = £735. Customer lifetime = 1 ÷ 0.05 = 20 months. LTV = £49 × 20 = £980.