Free SaaS Tool
Churn Rate Calculator
TL;DR
Churn rate is the share of customers (logo churn) or recurring revenue (revenue churn) you lose in a period. Customer churn = customers lost ÷ customers at start. Gross revenue churn = (cancelled MRR + downgrade MRR) ÷ starting MRR. For B2B SaaS, monthly logo churn under ~2% is healthy; revenue churn under ~2% is strong.
Customer (logo) churn
Customer churn rate
3.00%
Acceptable for SMB; watch the trend.
Gross revenue (MRR) churn
Gross revenue churn rate
4.40%
Middle of the pack.
How to calculate churn rate
Customer (logo) churn rate = customers lost during the period ÷ customers at the start of the period × 100.
Gross revenue (MRR) churn rate = (MRR lost to cancellations + MRR lost to downgrades) ÷ MRR at the start of the period × 100.
Benchmarks
For B2B SaaS, monthly customer churn under ~2% is generally healthy; SMB-focused products often see 3–5%, while enterprise can run below 1%. Gross revenue churn under ~2% monthly is strong. The most important signal is the trend over time, not a single month.
Why track both
Logo churn tells you how many relationships you are keeping; revenue churn tells you how much money stays. A product can hold customers while still leaking revenue through downgrades — which is why RetentionLens reports both, broken down by cohort, automatically from your Stripe data.
Frequently asked questions
What is a good monthly churn rate for SaaS?
For B2B SaaS, monthly customer churn under 2% (roughly 5–7% annually) is considered healthy. SMB-focused products often run 3–5% monthly, while enterprise products can be well below 1%. The benchmark depends heavily on your segment and contract length.
What is the difference between customer churn and revenue churn?
Customer (logo) churn counts how many accounts you lose. Revenue churn counts the recurring revenue you lose, including downgrades. Revenue churn matters more financially because losing one large account can outweigh several small ones.
How do you calculate churn rate?
Customer churn rate = customers lost during the period ÷ customers at the start of the period × 100. Gross revenue churn rate = (MRR lost to cancellations + MRR lost to downgrades) ÷ MRR at the start × 100.
Can churn rate be negative?
Customer and gross revenue churn cannot be negative. However, net revenue retention can exceed 100% — sometimes called "negative net churn" — when expansion from existing customers outweighs losses.
Stop calculating by hand
Connect Stripe and RetentionLens tracks this metric automatically — with cohorts, trends and churn-risk scoring. Start on the free tier.
Benchmarks are general SaaS ranges and vary by segment, stage and business model. Last reviewed 2026-05-30.