Free Churn & Retention Calculator

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Churn & Retention Calculator

Calculate your churn rate, retention rate, and the revenue churn is quietly costing you every month and every year.

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Churn Rate
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Retention
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Revenue Lost / Mo
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Annual Revenue Lost

Retention beats acquisition. Cutting monthly churn even a point or two compounds into massive revenue over a year, because every retained customer keeps paying instead of restarting at zero.

How churn and retention are calculated

Churn rate is customers lost in the period divided by customers at the start, times 100. Retention is simply the other side of the same number: 100 minus churn. Multiplying the lost customers by average revenue per customer gives the monthly revenue walking out of the door, and the annual figure shows what that becomes if the rate holds.

Why one point of churn costs more than it looks

Monthly churn compounds. Keeping 97% of customers each month leaves you with 0.9712 = about 69% of them after a year. At 95% monthly retention the figure is roughly 54%. Those two rates look two points apart and are fifteen points apart by December, which is why churn is the metric that quietly decides whether acquisition spend accumulates or just replaces losses.

The same compounding is the argument for retention work being cheaper than growth: a retained customer costs nothing to acquire again, and the saving repeats every month for as long as they stay. Cutting churn by a single point is usually a smaller project than raising acquisition by the equivalent revenue.

Frequently asked questions

How do you calculate churn rate?

Divide the number of customers lost in a period by the number you had at the start, then multiply by 100.

What is a good churn rate?

Lower is better. Monthly churn under 5% is healthy for most subscription businesses; above 10% is a serious leak.

Why does churn matter so much?

Because retained customers keep paying, so cutting churn even slightly compounds into large revenue gains over a year.

Is monthly churn just the annual rate divided by twelve?

No, and the gap is wide. Because churn compounds, 5% monthly is not 60% annually — it is 1 minus 0.95 to the twelfth power, about 46%. Dividing an annual figure by twelve always overstates monthly churn, and multiplying a monthly figure by twelve always overstates the annual loss.
Churn eating your growth?

DigiJaws builds retention and lifecycle systems that keep customers paying instead of leaving.

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