Churn & Retention Calculator
Calculate your churn rate, retention rate, and the revenue churn is quietly costing you every month and every year.
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?
What is a good churn rate?
Why does churn matter so much?
Is monthly churn just the annual rate divided by twelve?
DigiJaws builds retention and lifecycle systems that keep customers paying instead of leaving.
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