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How this calculator works
Churned revenue = current MRR × monthly churn rate. Net MRR change = new MRR − churned revenue. Projected MRR in 12 months = current MRR + (net change × 12). Revenue saved by halving churn = half the annual churn loss.
Useful scenarios
- A SaaS founder with $10K MRR at 5% monthly churn and $2K new MRR/month — seeing that churn eats $600/month and zero growth in 9 months.
- A membership creator with $5K MRR at 8% churn — realizing they lose $4,800/year to churn and halving it saves $2,400 without new customers.
- A course platform with $50K MRR at 3% churn and $8K new sales/month — modelling the impact of reducing churn from 3% to 1.5%.
FAQ
What is a healthy monthly churn rate?
For SaaS: 3-5% monthly churn is average for SMB. Under 2% is excellent. For creator memberships (Patreon, etc.): 5-10% is typical. For high-ticket services: under 2%. This calculator helps you quantify churn in dollar terms.
Is it better to focus on reducing churn or acquiring new customers?
Reducing churn has a compounding effect — every retained customer continues generating revenue. Improving churn from 5% to 3% can be worth more than a 20% increase in new sales. The calculator shows the annual dollar value of cutting churn in half.
How do I calculate churn rate for my business?
Monthly churn = customers lost in a month ÷ customers at start of month. For revenue churn (which this calculator uses): MRR lost to cancellations and downgrades ÷ starting MRR. The two can differ if high-value customers churn more than low-value ones.