Churn Rate Calculator

Use our straightforward churn rate calculator to measure your customer attrition percentage. Calculating churn rate (aka customer attrition) is straightforward but critical for knowing how to improve your bottom line.

How to use the churn rate calculator

Determine the churn rate of your SaaS to gain valuable insight into your customers. We have taken the hassle out of manual customer attrition estimation by devising this simple churn rate calculator.

You can discover your company's churn rate by following these simple steps:

  • Step #1 - First, you must determine the total number of customers that pay for your service every month. Once you have this value, enter it into the first text box, beside the Total Amount of Users prompt.

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

  • Step #3 - Finally, enter the average dollar value that 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 TextMagic's churn rate calculator do the rest! It's as simple as that!

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.

Simply knowing your churn rate doesn't help that much. Our tool will also estimate how much revenue you can recover in one month or one year if you reduce your churn rate by a specific percentage amount.

Why you should use our free churn rate calculator

Our monthly churn calculator is free and easy to use. With just a few clicks, you will understand exactly how much money is lost to churn.

The results can help with customer retention strategies and give insight into the aspects of your business that aren't working well and may need to be improved to experience maximum growth.

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.

Frequently Asked Questions

What is churn rate, and how do you calculate it?

Churn rate (or customer attrition) is the percentage of customers that leave your business in a given time frame. To calculate churn, you divide the total customers lost during a period by the total number of customers your firm had at the beginning of that period.

There are multiple churn rate calculation formulas:

(Cancelled Customers in the last 30 days ÷ Active Customers 30 days ago) x 100


(Customers at the beginning of the month - Customers at the end of the month) / Customers at the beginning of the month

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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