Free churn rate calculator

Determine customer attrition and how much revenue you could recover by reducing it with our simple churn rate calculator.

How to use the churn rate calculator

Here’s how you can calculate the churn rate of your SaaS products and services to find out if your company is growing or not:

  • Step #1 - Determine the total customers that pay for your service or renew their subscription every month. Once you have this value, enter it into the first text box beside the “Total amount of users” prompt.

  • Step #2 - Next, determine how many of your customers closed or downgraded their accounts last month. Enter the number of customers lost into the second text box.

  • Step #3 - Enter the average dollar value each account generates per month into the text box beside the “Average account monthly value” prompt.

  • Step #4 - Click the green calculate button and let Touchpoint's churn rate calculator do the rest.

Your churn rate calculations and lost monthly revenue due to churn data will be generated momentarily and can be downloaded. You can also request a shareable link to your results.

To achieve a good churn rate, you must first calculate it correctly. Our customer attrition calculator was designed with SaaS businesses in mind. Depending on your business model, the churn rate formula may change.

We recommend reading our complete guide on customer churn to understand how to set the correct variables and periods for calculating attrition.

Our tool will also estimate how much revenue you can recover in one month or year if you reduce your churn rate by a specific percentage.

Why you should use our free churn rate calculator

Our monthly attrition rate calculator is free and easy to use. You will understand precisely how much money is lost to churning customers with just a few clicks.

The results can help you learn how to retain customers, improve the customer experience, and give insight into the aspects of your business that aren't working well.

Benefits of calculating and reducing churn rate

Understanding and correctly managing customer attrition is vital to all businesses. Churn is expressed as a percentage and reflects the average number of customers who have stopped dealing with your company over a specific time.

Customer attrition is a key performance indicator that measures the health of your company. A high churn rate means that more customers are leaving your business than those that are joining. A low churn rate means that you are retaining a high level of your customers. A typical "good" monthly churn rate for SaaS companies can be anywhere between 3 and 5%, which brings the annual churn rate calculation somewhere between 30 and 50%.

Calculating your churn regularly allows you to keep a close eye on how many new customers you are attaining and how many you are losing. Ignoring this critical factor could mean a loss in revenue over time.

Why we created this tool

We understand the value of having detailed insight into how your business performs and your customer attrition rates. As a fast-growing SaaS, we want to provide the tools you need to achieve your business goals. That's why we have created multiple free tools for growing businesses.

Trying to determine the churn rate formula on your own can be tedious and time-consuming. Use our free churn rate calculation to measure this important metric with just a few clicks.

How can I reduce churn rate and improve customer retention?

There are many different things that you can do to reduce your churn rate, improve customer acquisition and retention. Some strategies include:

  • Acquire new customers through marketing strategies, new product or service launches, and advertising campaigns;

  • Increase customer retention rates by improving customer service, providing requested services, and improving your existing products' quality;

  • Reaching out to lost customers and incentivizing them with special offers or plans. Long term churned customers may come back to your business if they are correctly targeted.

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