Churn Impact Calculator
Quantify how monthly churn affects revenue, LTV, and the value of retention improvements.
Monthly Recurring Revenue at the start of the projection. Total subscription revenue per month.
% of customers (or MRR) you currently lose each month. Customers lost ÷ starting customers × 100.
Target churn rate after your retention initiative. Compare the ending MRR and LTV gain below.
How many months to project forward. 12 months shows one full year of compounding impact.
Ending MRR
$27,018
MRR Lost
$22,982
LTV at Current Churn
$1,000,000
LTV Gain from Improvement
$666,667
Monthly Churn Rate
5.0%
Benchmarks vary by segment, select SMB, mid-market, or enterprise
Review for underinvestment
LTV:CAC above 6:1 may mean you are leaving growth on the table. Test incremental spend on proven channels.
Open budget planner calculator →Churn is acceptable but improvable
For Mid-market SaaS, reducing churn to the strong band can materially increase LTV without new acquisition.
Open churn impact calculator →Best-in-class payback
Under 6 months, reinvest recovered cash into growth channels with proven ROAS.
Open budget planner calculator →
How it works
Small changes in churn compound over time. Reducing churn from 5% to 3% monthly can dramatically increase LTV and reduce the customers you must acquire to maintain growth.
Frequently Asked Questions
What is churn rate?
Churn rate is the percentage of customers or recurring revenue lost in a given period. In SaaS, it measures how many subscribers cancel or downgrade. High churn erodes LTV, increases the customers you must acquire to maintain revenue, and is often called the silent killer of subscription growth.
How do you calculate SaaS churn rate?
Logo churn = Customers lost ÷ Starting customers. Revenue churn = MRR lost ÷ Starting MRR. Example: 5 customers lost from a base of 100 = 5% monthly logo churn. Net Revenue Retention (NRR) goes further by including expansion: NRR = (Starting MRR + Expansion − Contraction − Churn) ÷ Starting MRR. Use this calculator to model how churn changes affect revenue and LTV over time.
What is a good churn rate for SaaS?
For B2B SaaS, monthly logo churn under 1% is excellent, 1–2% is good, and above 3% needs attention. Monthly revenue churn under 2% is strong. Benchmarks vary by segment: SMB churn is typically higher than enterprise. NRR above 100% means expansion offsets losses, top SaaS companies achieve 110–130%+ NRR.
What is the difference between logo churn and revenue churn?
Logo churn counts customers lost regardless of contract size. Revenue churn measures MRR lost, which differs when customers have varying ACVs. Losing one enterprise customer may equal losing fifty SMB accounts in revenue terms. Revenue churn can even be negative (net negative churn) when expansion from existing customers exceeds downgrades and cancellations.
How does churn affect LTV and revenue?
Churn sits in the LTV denominator: LTV = Gross Contribution ÷ Churn. Cutting monthly churn from 5% to 3% increases LTV by 67% at the same ARPU. Over 12 months, compounding churn also erodes MRR, a 5% monthly churn rate leaves only ~54% of starting MRR after 12 months. Small retention improvements have outsized long-term impact.
How can I reduce SaaS churn?
Focus on onboarding (time-to-value in the first 30 days), proactive customer success for at-risk accounts, product stickiness through integrations and workflows, and pricing alignment with customer value. Use health scores to identify accounts likely to churn. Even a 1–2 point reduction in monthly churn can dramatically improve LTV and reduce acquisition pressure.
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