How do you calculate churn rate?

For B2B SaaS customer (logo) churn: subtract customers at end from customers at start, add new customers won in the period, then divide by customers at start. Churn % = ((customers at start − customers at end + new customers) ÷ customers at start) × 100. A team that started with 400 customers, added 20, and ended with 412 lost 8 and has (8 ÷ 400) × 100 = 2% period churn. Open opportunities and leads stay out — this is about customers you already had.

How do you calculate retention rate?

Retention is the inverse of churn: Retention % = 100 − churn %, or ((customers at end − new customers) ÷ customers at start) × 100. The same 400 / 20 / 412 book has 98% retention. Net revenue retention (NRR) is the revenue version: it starts from MRR, subtracts churned MRR, adds expansion, and can exceed 100% when the remaining book grows.

What's the difference between customer churn and MRR churn?

Customer (logo) churn counts accounts. MRR churn weights those accounts by what they paid, and splits into gross (churned MRR ÷ starting MRR) and net ((churned MRR − expansion MRR) ÷ starting MRR). A book can show 2% logo churn and still grow revenue if expansion outruns the dollars that left — that's NRR above 100%. The reverse is worse: logos stay and MRR still shrinks through downgrades.

How do you convert monthly churn to annual churn?

Do not multiply by 12. Compound it: annual churn = 1 − (1 − monthly churn)^12. A 2% month is about 21.5% a year, not 24%. The reverse is monthly = 1 − (1 − annual)^(1/12). This calculator converts both ways from the period length you enter (1 = monthly, 3 = quarterly, 12 = annual).

What is a good churn rate for B2B SaaS?

For most mid-market B2B SaaS teams, 1–2% monthly logo churn (about 12–22% annual) and NRR of 100–110% is typical. Enterprise sits lower on logo churn and higher on NRR; SMB sits the other way. A "good" rate beats your own last two quarters in the same segment — and a falling rate against one named rival is a competitive problem, not a gym-membership statistic.

Is this churn rate calculator free? Do I need an account?

Yes, and no account. The B2B SaaS churn and retention calculator runs entirely in your browser and nothing you type is sent to our servers. We only ask for an email if you want to download the result as a PDF.

Free tool

Churn Rate Calculator

This is a B2B SaaS churn and retention calculator — logos and recurring revenue you already had, not gym memberships or consumer subscriptions. Enter customers at start, customers at end, and new customers in the period to get churn %, retention %, and the monthly ↔ annual conversion. Use the MRR card for gross churn, net churn, and net revenue retention. Optional: how many leavers went to a competitor. Free, runs in your browser, no account.

Customer churn (logo churn)

Customers you already had. New logos enter so they don't masquerade as retention.

Customers at start

Customers at end

New customers in the period

Period length

Customers lost to a competitor (optional — the competitive split)

Customer churn: —
Retention: —
Customers lost: —
Monthly equivalent: —
Annual equivalent: —
Annual retention: —
Share of churn to rivals: —

Kept vs lost

Kept

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Lost

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Rivals

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MRR churn (revenue churn)

Same period, weighted by dollars. Expansion can push net churn negative and NRR past 100%.

MRR at start

Churned MRR

Expansion MRR (optional)

Period length

Gross MRR churn: —
Net MRR churn: —
Net revenue retention: —
Ending MRR (ex-new): —
Gross, monthly equivalent: —
Gross, annual equivalent: —
NRR, annual equivalent: —

Gross churn vs NRR

Gross

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NRR

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Numbers update as you type. Nothing is saved on our servers.

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A churn rate that hides a cluster of leavers on one name is a positioning problem, not a save-desk problem. Start a trial and watch that rival — or build the Sales Battlecard Generator one-pager your CS and sales team take into the next save and the next deal.

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The churn and retention formulas, and why B2B SaaS splits customer vs MRR

Churn % = ((start − end + new) ÷ start) × 100

Retention % = 100 − churn %

Gross MRR churn = churned MRR ÷ starting MRR

Net MRR churn = (churned − expansion) ÷ starting MRR

NRR = (starting − churned + expansion) ÷ starting MRR

Annual = 1 − (1 − monthly)¹²

A team that started the month with 400 customers, added 20, and ended with 412 lost 8 logos. Customer churn rate is (8 ÷ 400) × 100 = 2%. Retention is 98%. Compounded over a year that 2% month is 1 − 0.98¹² ≈ 21.5% annual churn — not 24%. Multiplying by 12 overstates the leak.

Customer churn vs MRR churn. Logo churn counts accounts. MRR churn weights them by what they paid. The same 8 leavers look worse if they were your largest accounts, and better if expansion on the remaining book more than replaced them. Gross MRR churn ignores expansion; net MRR churn and NRR include it. NRR can sit above 100% while logo churn is still a problem — expansion is hiding a leak that will show the month upsells slow.

The optional competitive cut is the reason this page exists for an Outmano reader: of those 8 leavers, how many went to a named rival? 4 of 8 is 50% of churn. That's not a CS-only number. It's a win/loss and a battlecard number.

This page is a B2B SaaS calculator. If you landed here looking for gym, box, or consumer-subscription churn, the arithmetic is the same — leavers divided by the starting book — but the benchmarks below are for software teams selling to other businesses.

B2B SaaS churn and retention benchmarks

Segment	Monthly logo	Annual logo	Typical NRR
SMB / self-serve-assisted Volume and a short contract do the churn. A 3% month looks fine until you annualize it.	3% – 5%	30% – 45%	90% – 100%
Mid-market The default B2B SaaS band. Judge it against your last two quarters in the same segment, not a cross-industry average.	1% – 2%	12% – 22%	100% – 110%
Enterprise (high ACV) Longer contracts, higher switching costs. A 1% month is already a warning; NRR is the number the board reads.	0.5% – 1%	6% – 12%	110% – 130%
Best-in-class B2B SaaS Expansion more than replaces the logos that leave. Rare, and usually a product moat — not a save-desk miracle.	under 0.7%	under 8%	120%+
Head-to-head vs a named rival The share of leavers who went to one competitor is the number that tells you whether retention is a CS problem or a positioning problem.	varies	varies	—

Rough public bands for B2B and SaaS, not targets and not consumer subscriptions. Mix SMB with enterprise, or logo churn with NRR, and every row stops meaning anything — split the number the way you split the book.

How to calculate B2B SaaS churn and retention

Pick one period and stick to it. A month, a quarter, or a year. Mixing a monthly start count with an annual end count is the fastest way to a number nobody can act on.
Count customers at start, new logos, and customers at end. Lost = start + new − end. Churn = lost ÷ start. Retention = 1 − churn. New logos go in the numerator as an add-back so a growing book doesn't look more loyal than it is.
Convert monthly ↔ annual with compounding, not ×12. Annual = 1 − (1 − monthly)¹². A 2% month is ~21.5% a year. Put 1, 3, or 12 in the period-length field and read both equivalents.
Run the MRR card on the same period. Starting MRR, churned MRR, expansion MRR → gross churn, net churn, NRR. If logo churn looks fine and NRR doesn't (or the reverse), the dollars and the logos are telling different stories.
Tag leavers who went to a competitor. Share of churn to rivals = lost-to-competitor ÷ customers lost. An overall 2% that is 50% competitive is the number that should change what you do next week.
Compare inside the motion, not across it. A 4% SMB month and a 0.8% enterprise month can both be healthy. The table above gives you the band; your last two quarters give you the real baseline. A rising share against one rival is a battlecard problem, not a bigger save quota.

Working the rest of the B2B SaaS math? The Win Rate Calculator is the acquisition twin of this retention number, the Sales Velocity Calculator turns the same win rate into dollars per day, the TAM/SAM/SOM Calculator sizes the market those retained customers sit in, the Sales Battlecard Generator turns one rival into a one-pager, and the Competitor Finder names who you're actually losing to. There's more in the free tools catalog.

Churn rate calculator FAQ

How do you calculate churn rate?: For B2B SaaS customer (logo) churn: subtract customers at end from customers at start, add new customers won in the period, then divide by customers at start. Churn % = ((customers at start − customers at end + new customers) ÷ customers at start) × 100. A team that started with 400 customers, added 20, and ended with 412 lost 8 and has (8 ÷ 400) × 100 = 2% period churn. Open opportunities and leads stay out — this is about customers you already had.
How do you calculate retention rate?: Retention is the inverse of churn: Retention % = 100 − churn %, or ((customers at end − new customers) ÷ customers at start) × 100. The same 400 / 20 / 412 book has 98% retention. Net revenue retention (NRR) is the revenue version: it starts from MRR, subtracts churned MRR, adds expansion, and can exceed 100% when the remaining book grows.
What's the difference between customer churn and MRR churn?: Customer (logo) churn counts accounts. MRR churn weights those accounts by what they paid, and splits into gross (churned MRR ÷ starting MRR) and net ((churned MRR − expansion MRR) ÷ starting MRR). A book can show 2% logo churn and still grow revenue if expansion outruns the dollars that left — that's NRR above 100%. The reverse is worse: logos stay and MRR still shrinks through downgrades.
How do you convert monthly churn to annual churn?: Do not multiply by 12. Compound it: annual churn = 1 − (1 − monthly churn)^12. A 2% month is about 21.5% a year, not 24%. The reverse is monthly = 1 − (1 − annual)^(1/12). This calculator converts both ways from the period length you enter (1 = monthly, 3 = quarterly, 12 = annual).
What is a good churn rate for B2B SaaS?: For most mid-market B2B SaaS teams, 1–2% monthly logo churn (about 12–22% annual) and NRR of 100–110% is typical. Enterprise sits lower on logo churn and higher on NRR; SMB sits the other way. A "good" rate beats your own last two quarters in the same segment — and a falling rate against one named rival is a competitive problem, not a gym-membership statistic.
Is this churn rate calculator free? Do I need an account?: Yes, and no account. The B2B SaaS churn and retention calculator runs entirely in your browser and nothing you type is sent to our servers. We only ask for an email if you want to download the result as a PDF.