Churn Rate Calculator

Customer churn = customers lost during the period ÷ customers at the start of the period. Keep new signups out of both sides: mixing mid-period joiners into the denominator flatters the rate, especially while you’re growing. If you need one number across a growing base, either use cohort churn (track each signup month separately) or a midpoint denominator — but be consistent, because the definition changes the number materially.

Converting between periods requires geometric, not linear, math. Because each month’s churn applies only to survivors of the previous month, annual churn = 1 − (1 − m)^12. Thus 3% monthly becomes 30.6% annual, 5% becomes 46.0%, and 10% becomes 71.8%. Running it backwards, an annual plan with 40% yearly churn is equivalent to about 4.2% monthly — the right basis for comparing it against a monthly plan.

Consumer subscription apps typically see monthly churn in the 5–15% range on monthly plans, with fitness, entertainment, and dating at the high end and utilities or professional tools lower. Annual plans churn far less per month by construction — the user decided once for the year — which is a big part of why pushing annual plans is the most reliable churn lever in the industry. Involuntary churn (failed payments) often accounts for 10–30% of total churn and is the cheapest slice to recover with billing retries and grace periods.

The LTV impact is hyperbolic, not linear, because lifetime = 1 ÷ churn. Cutting monthly churn from 10% to 8% extends average lifetime from 10 to 12.5 months — a 25% LTV gain from a 2-point improvement. That leverage is why a churn project usually beats an equivalent acquisition project: it raises the value of every user you already have and every user you’ll ever acquire.