# Churn Rate Calculator

URL: https://www.paydude.io/resources/tools/churn-rate-calculator
Type: Free interactive calculator
Summary: Calculate monthly and annual churn, gross and net revenue churn, and see whether the customers you lose are worth more or less than average.

One churn number hides the diagnosis. Customer churn and revenue churn diverge in a way that tells you whether you are losing your smallest accounts or your largest ones — problems with completely different fixes.

## Summary

3% monthly churn is 31% a year — compounding is unkind. Revenue churn above customer churn means larger accounts are leaving. Net revenue churn can be negative, which is the goal. A fifth to two fifths of churn is usually involuntary, and fixable.

## Monthly churn compounds harder than it looks

**Monthly churn and its annual equivalent**

| Monthly | Annual | Average lifetime |
| --- | --- | --- |
| 1% | 11.4% | 100 months |
| 2% | 21.5% | 50 months |
| 3% | 30.6% | 33 months |
| 5% | 46.0% | 20 months |
| 8% | 63.2% | 12.5 months |

At 5% monthly you replace nearly half your customer base every year just to stay flat. That is the treadmill that makes growth feel impossible while the top-of-funnel numbers look fine.

## What the gap tells you

- **Revenue churn far above customer churn** — your larger accounts are leaving. More urgent than the headline suggests, and usually a product or account-management problem.
- **Revenue churn far below customer churn** — your smallest accounts are leaving. Less damaging, often a self-serve onboarding problem.
- **Net revenue churn negative** — expansion exceeds losses. The base grows on its own, which is the strongest position in SaaS.

> **Separate voluntary from involuntary:** Typically 20–40% of churn is involuntary — failed payments rather than decisions. It has a 60–80% recovery rate, unlike voluntary churn, so it is worth measuring separately before doing any product work. See [involuntary churn](https://www.paydude.io/resources/what-is-involuntary-churn).

## Rough benchmarks

**Typical monthly churn by segment**

| Segment | Healthy monthly churn |
| --- | --- |
| Consumer / prosumer | 3–7% |
| SMB SaaS | 3–5% |
| Mid-market | 1–2% |
| Enterprise | Under 1% |

Compare like with like. A consumer app at 5% and an enterprise product at 5% are in entirely different amounts of trouble.

**Fix the churn nobody chose** Failed payments are churn you can recover, not customers you lost. — [See pricing](https://www.paydude.io/pricing)

## Frequently asked questions

### What is a good churn rate for SaaS?

It depends entirely on segment. Enterprise products should be under 1% monthly; SMB SaaS typically runs 3–5%; consumer products 3–7%. Comparing across segments is meaningless — a 5% rate is normal for one and alarming for another.

### What is the difference between customer churn and revenue churn?

Customer churn counts accounts lost; revenue churn counts the MRR they represented. If revenue churn is higher, you are losing larger-than-average customers. If lower, you are losing smaller ones. The gap is the diagnosis.

### Can churn be negative?

Net revenue churn can be, when expansion from existing customers exceeds what you lose. Customer churn cannot be negative. Negative net revenue churn means your base grows with no new customers at all.

### How do I convert monthly churn to annual?

Not by multiplying by twelve. Use 1 − (1 − monthly)^12. At 3% monthly that is 30.6% annually, not 36% — churn applies to a shrinking base each month.