Mowt
FeaturesIntegrationsPricingMobileAbout
Start free trial
Free tool

Cost of churn calculator

A true month-by-month simulation of what churn takes from your revenue over 12, 24 and 36 months, and exactly what fixing it is worth. No annual-multiplication shortcuts, no email gate.

$

Your monthly recurring revenue today.

$

From new customers. Set to 0 to see pure decay.

5.0%
%

MRR lost to cancellations and downgrades each month.

−1.0pt

Percentage points of churn you could win back. Capped at your current churn rate.

Cost of churn, 12 mo
-
Improvement worth, 12 mo
-
Base lost in 12 mo
-
MRR growth ceiling
-
Save this as a one-page report card
Your churn numbers on a branded PDF, ready to share with your team.

 

Your MRR over the next 36 months

current churn improved churn zero-churn baseline · shaded wedge = revenue you keep with less churn

now6mo12mo18mo24mo30mo36mo

The 12 / 24 / 36 month view

Cumulative revenue counts the MRR you collect each month. The cost of churn compares it against a zero-churn baseline with the same new-MRR growth.

Horizon MRR at current churn MRR if improved Cost of churn Improvement worth
How it works

A real simulation, not churned MRR × 12.

Most churn calculators multiply one month's churned MRR by twelve. That ignores compounding in both directions: your base shrinks as customers leave, and your new MRR keeps adding to it. This tool runs the actual recurrence, month by month.

MRRt = MRRt−1 × (1 − churn) + new MRR

Revenue booked in month t is the MRR at the end of that month, after churn and new sales. Summing those 36 values gives cumulative revenue. The cost of churn is the gap between that sum and the same sum with churn set to zero.

Cost of churn = Σ revenue (0% churn) − Σ revenue (your churn)
Every churned dollar is missing from every month that follows, which is why this number dwarfs the single-month figure.
Edge cases

The fine print in the maths.

At zero churn the recurrence collapses to straight-line growth (MRR + new MRR × months), so the cost of churn is zero and no division ever touches a zero denominator. Churn typed above 100% is clamped, and the improvement scenario is capped at your current churn rate, since churn cannot go negative.

The growth ceiling comes from the steady state of the recurrence: with fixed new MRR g and churn c, MRR converges on g ÷ c and can never pass it. It only appears when both g and c are above zero. If your MRR is already above the ceiling, the simulation shows it shrinking towards that level.

One honest limitation: the model assumes a flat churn rate and flat new MRR. Real businesses see churn fall as they move upmarket and new MRR grow with the team. Treat the outputs as a floor on what churn costs you, not a forecast.

Benchmarks

How does your churn compare?

Two large datasets publish monthly churn benchmarks. ChartMogul's figures are customer churn rather than revenue churn, so treat them as directional when comparing against this calculator.

Median monthly customer churn by company size

Source: ChartMogul customer churn benchmarks, 2025, from a dataset of 2,500+ SaaS businesses.

Company size Median monthly churn
Under $300k ARR 6.5%
$1M – $3M ARR 3.7%
Above $8M ARR 3.1%
Best-in-class (most size bands) 1.3% – 1.5%

Average monthly churn by category

Source: Recurly Research churn rate benchmarks, 2024–2025. Roughly 4% monthly is considered a good benchmark for subscription businesses.

Segment Average monthly churn
All subscription businesses 3.27% (2.41% voluntary + 0.86% involuntary)
B2B, including software 3.8%
Consumer / DTC categories 6.5%

Around a quarter of that churn is involuntary, from failed payments. Dunning and card retries recover much of it; our failed payment recovery calculator shows what that is worth.

Retention at private SaaS companies

SaaS Capital's 2025 survey of private SaaS companies found businesses with $25,000–$50,000 ACVs report a median net revenue retention of 102%, with the top quartile at 111% and the bottom quartile at 97%. The median growth rate across companies above $1M ARR was 24%. NRR nets expansion against churn, so a company can clear 100% while still leaking gross revenue; see the NRR calculator for that split.

FAQ

Frequently asked questions

How do you calculate the cost of churn?

Take your current MRR and simulate it forward month by month: each month you lose MRR × churn rate and add any new MRR. The cost of churn is the gap between the revenue you would have collected with zero churn and what you actually collect over the period. A single-month snapshot understates it badly, because every churned dollar is also missing from every month that follows.

What is a good monthly churn rate for SaaS?

It depends on stage and customer size. ChartMogul's benchmarks across 2,500+ SaaS businesses show median monthly customer churn of 6.5% for companies under $300k ARR, falling to about 3.1% above $8M ARR, with best-in-class around 1.3–1.5%. Recurly's churn benchmarks put B2B software at roughly 3.8% monthly on average.

Is 5% monthly churn bad?

For an early-stage SaaS it is close to the median, but the compounding is brutal: at 5% monthly churn you lose 1 − 0.95¹² = 46% of your starting revenue base within a year. It also caps your growth. Adding $1,000 of new MRR a month at 5% churn means your MRR can mathematically never exceed $20,000. Getting from 5% towards 3% is usually the highest-leverage work an early-stage founder can do.

What is the difference between customer churn and revenue churn?

Customer churn counts how many customers cancelled; revenue churn measures how much MRR they took with them. They diverge whenever plan sizes differ. Losing one $500/month customer hurts far more than losing five $20/month customers. This calculator models revenue churn, because revenue is what pays the bills and what compounds.

How much is a 1% improvement in churn worth?

More than most founders expect, because the saved revenue compounds every month. For a business at $10,000 MRR adding $1,000 of new MRR a month, cutting monthly churn from 5% to 4% is worth about $7,900 in extra revenue in the first year and roughly $62,800 over three years. The longer the horizon, the wider the gap grows.

Why does churn compound over time?

Because each month's churn is applied to whatever MRR remains, and every dollar that churns stops paying you in every subsequent month. Losing 5% a month does not mean losing 60% a year of the base, since the base shrinks as you go, but the cumulative revenue foregone keeps stacking up month after month. That is why a modest-looking monthly percentage becomes a five- or six-figure annual cost.

Can a SaaS business grow with high churn?

Only up to a hard ceiling. If you add a fixed amount of new MRR each month, your MRR converges on new MRR ÷ churn rate and can never pass it: a leaky-bucket equilibrium where new sales only replace losses. Past that point the only ways to grow are adding more new MRR each month, expansion revenue from existing customers, or cutting churn. Our maximum MRR calculator explores this ceiling in depth.

What is the average churn rate for subscription businesses?

Recurly Research's churn benchmarks report an overall average monthly churn rate of 3.27%: 2.41% voluntary and 0.86% involuntary from failed payments. B2B categories such as software average about 3.8% monthly, while consumer categories run higher at around 6.5%. Note that roughly a quarter of all churn is involuntary, which dunning and card-retry tooling can recover.

Keep exploring
Get started

Stop estimating.
See your actual churn.

Connect your Stripe account and see your real MRR, churn, and LTV in real time — on desktop and mobile.

Start 7-day free trial

No credit card required · Connect Stripe in 1 click