In SaaS, growth isn’t only about winning new customers. It’s also about keeping the ones you already have. That’s where churn comes in.
Customer churn is one of the most important — and often underestimated — metrics in subscription businesses. And while many founders talk about it, too few track it with precision. That’s why every SaaS company should use a churn calculator.
What is Churn in SaaS?
Churn is the percentage of customers (or revenue) your company loses over a given time period.
👉 Example:
- If you start the month with 100 customers and lose 5, your customer churn rate is 5%.
- If you start with $10,000 in MRR and lose $500, your revenue churn rate is 5%.
Both numbers matter — because churn directly impacts growth, revenue forecasts, and investor confidence.
Why Churn Matters More Than You Think
- Growth Leaks
- High churn means your new customer signups are simply replacing lost ones. Real growth stalls.
- Revenue Predictability
- Investors and CFOs want recurring revenue that’s stable. Churn undermines predictability.
- Customer Lifetime Value (LTV)
- Churn affects how much value you can generate from each customer. A higher churn rate shortens customer lifetime and lowers profitability.
- SaaS Multiples & Valuation
- Companies with low churn often get higher valuation multiples because revenue is seen as reliable.
Why Use a Churn Calculator?
You can calculate churn manually, but a churn calculator makes it easier, faster, and more accurate. Here’s what it helps you with:
- Track Customer Losses – See exactly how many subscribers you lose each month.
- Measure Revenue Churn – Identify lost recurring revenue from downgrades or cancellations.
- Spot Trends Early – Compare churn over time and react before it becomes a serious problem.
- Plan Smarter – Forecast growth more realistically by factoring churn into your models.
Customer Churn vs Revenue Churn
Not all churn is created equal:
- Customer Churn = % of users lost.
- Revenue Churn = % of revenue lost.
👉 Example:
- Losing 10 low-paying users might not hurt much.
- Losing 1 enterprise customer worth $1,000/month could be devastating.
That’s why tracking both is essential.
Free SaaS Churn Calculator
At SaaSBuffer.com, we’ve built a free Churn Calculator for SaaS companies.
With it, you can:
- Input customer counts and subscription values.
- Calculate both customer churn and revenue churn instantly.
- Track net churn when factoring in upgrades and expansions.
No spreadsheets, no manual math — just fast, accurate results.
Final Thoughts
Churn isn’t just a metric — it’s a signal. High churn tells you customers aren’t finding enough value, while low churn is proof that your product is sticky.
Every SaaS company, no matter the size, should track churn with precision. A churn calculator makes it simple, reliable, and actionable — so you can focus on what matters most: keeping customers happy and growing sustainably.
👉 Try the free Churn Calculator today: SaaSBuffer.com