Churn Rate Calculator

Calculate customer churn, retention, gross and net revenue churn, NRR, annualized churn, and expected customer lifetime from one consistent reporting period.

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Inputs

Use 1 for monthly data, 3 for quarterly data, or 12 for annual data.

Project customers and recurring revenue for 1 to 36 months.

Customer churn

Used to reconcile the ending count, not the churn denominator.

Recurring revenue churn

Upsells and expansion from the starting customer base.

Included in ending revenue, but excluded from NRR.

Customer churn rate

4.50%

1-month period: customers lost ÷ customers at start.

Customer retention

95.50%

1,015 ending customers after new adds.

Annualized customer churn

42.5%

Compounded from the normalized monthly churn rate.

Gross revenue retention

95.0%

Excludes expansion and new-customer revenue.

Net revenue retention (NRR)

97.0%

3.0% net revenue churn.

Expected customer lifetime

22.2 months

Simple 1 ÷ normalized monthly churn estimate.

Ending recurring revenue

$105,000

Start − churn + expansion + new revenue.

Customers in 12 months

1,150

Assumes the same churn and new-customer pace.

Revenue in 12 months

$154,495

Assumes the same NRR and new-revenue pace.

Existing-customer revenue retention is 97.0%. The existing customer base is contracting before revenue from new customers.

Churn projection

See how constant churn, expansion, and new additions compound over time.

How to calculate customer and revenue churn

Logo churn tells you how many customer relationships you lost. Revenue churn tells you how much recurring value left. Track both by consistent cohort, plan, and period because a stable customer count can hide the loss of high-value accounts.

Customer churn = Lost customers ÷ Starting customers

Gross revenue churn = Churned recurring revenue ÷ Starting recurring revenue

Net revenue churn = (Churned revenue − Expansion revenue) ÷ Starting recurring revenue

NRR = 1 − Net revenue churn

Use a starting base

Never divide lost customers by ending customers or by customers added during the period.

Segment the metric

Plan, geography, acquisition channel, and tenure can have very different churn profiles.

Compound annualization

Convert retention across periods with exponents; do not simply multiply a monthly rate by 12.

Alex Tapio, founder of Finamodel and ex-Deloitte financial modelling expert

Alex Tapio

Founder of Finamodel • Professional Financial Modeller • Ex-Deloitte

alextapio.comx.com/alextapioLinkedIncontact [at] finamodel.com

Frequently asked

Divide customers lost during the period by customers active at the start of the period, then multiply by 100. New customers are excluded from the denominator because they were not exposed for the full measurement period.

Gross revenue churn counts only lost or downgraded recurring revenue. Net revenue churn subtracts expansion from retained customers. Net churn can be negative when expansion exceeds lost revenue, which corresponds to net revenue retention above 100%.

Compound retention rather than multiplying churn by 12: annual churn = 1 − (1 − monthly churn)^12. At 5% monthly churn, annualized churn is about 46%, not 60%.

Do not include new customers in the churn-rate denominator. Track them separately when reconciling ending customers: ending customers = starting customers − lost customers + new customers.

It varies by customer type, contract length, and company stage. Compare the same period and segment over time. Enterprise products usually target lower logo churn, while consumer subscriptions may tolerate higher churn if acquisition economics remain attractive.

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