Enter your numbers below to calculate your monthly and annual churn rate, customer half-life, and see how you compare against industry benchmarks.
Monthly churn rate
5.00%
Annual churn rate
46.0%
Customer half-life
13.5 months
Your benchmark
Acceptable
Monthly churn rate is the percentage of customers who cancel or don't renew within a given month. The formula is straightforward:
Monthly Churn Rate = (Churned Customers ÷ Active Customers) × 100
Annual churn rate accounts for the compounding effect. A 5% monthly churn rate doesn't mean 60% annual. It compounds to roughly 46%. The formula:
Annual Churn = 1 − (1 − Monthly Rate)12
Customer half-life tells you how long until you've lost half your current customers at the current churn rate. It's a more intuitive way to think about the urgency of your churn problem.
"What's a good churn rate?" depends on your company stage, price point, and market. Here are the ranges most SaaS companies should target:
| Segment | Monthly churn | Annual churn |
|---|---|---|
| Enterprise SaaS (>$1k/mo) | 0.5 – 1% | 6 – 12% |
| Mid-market ($100–$1k/mo) | 1 – 2.5% | 12 – 26% |
| SMB (<$100/mo) | 3 – 7% | 30 – 58% |
| Early-stage (pre-PMF) | 5 – 15% | 46 – 86% |
| Mature SaaS (post-PMF) | 1 – 3% | 12 – 30% |
Want a deeper dive into what "good" means for your specific situation? Read our full guide: What is a good churn rate for SaaS?
You can also model the financial impact of your churn rate with our Revenue Impact of Churn Calculator.
ChurnHalt connects to your Stripe account, analyses churn patterns, and flags at-risk subscribers before they cancel.
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