Churn rate is the percentage of customers or revenue lost in a given period. It's the #1 metric for SaaS health.
Healthy SaaS churn: <2% monthly or <5% annually. Enterprise SaaS targets <1% monthly.
Reach for this calculator when you need to present a business metric to stakeholders. Accurate, consistently-defined figures command more credibility than estimates, particularly in financial discussions.
Many business metric errors arise from using the wrong time period for the calculation. Annualising a figure from a seasonal month, or averaging a figure that changes over time, can produce misleading results that don't reflect steady-state performance.
A startup founder uses the calculator to determine break-even point: fixed monthly costs £12,000, variable cost per unit £18, selling price £42. Break-even is 500 units per month — a concrete sales target that the team can evaluate against pipeline and capacity.
Under 2% monthly or 5% annual for SMB. Enterprise targets under 1% monthly.
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