Annual Recurring Revenue Calculator
Turn MRR into ARR, with a growth projection for the year ahead.
Work out churn rate from customers lost against customers at the start.
Customers lost means cancellations and non-renewals during the period, not customers who never joined.
Churn rate
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The Churn Rate Calculator turns customers lost and customers at the start of the period into a churn rate instantly, with retention rate, implied average customer lifespan and the revenue lost to churn.
Churn is the leak in the bucket. A subscription business can pour money into acquisition and still shrink if customers walk out of the back door faster than new ones come through the front, which is why churn is the first number investors ask about.
Enter the customers you started the period with and how many you lost, and the churn rate appears straight away, along with the matching retention rate and the average customer lifespan it implies. Add average revenue per customer and the calculator also shows the revenue that walked out with them.
Churn updates live as either figure changes.
Shows the average customer lifespan the churn rate implies.
Add revenue per customer to see what churn actually costs.
No sign-up, no data sent anywhere.
The customer count at the beginning of the month, quarter or year.
Cancellations and non-renewals during that same period.
Optional — shows the revenue lost to churn in the period.
Retention rate and implied lifespan appear alongside it.
Churn rate = Customers lost ÷ Customers at the start of the period × 100. Losing 72 customers from a starting base of 1,200 is a churn rate of 6%.
Not in the standard formula — churn is measured against the customers you began the period with. Including mid-period sign-ups dilutes the figure and makes churn look better than it is.
Average lifespan is roughly 1 ÷ churn rate. A 6% monthly churn implies an average lifespan of about 17 months, which feeds straight into a lifetime value calculation.
It depends on the model and the price point. Enterprise contracts usually churn in low single digits annually, while low-priced consumer subscriptions commonly churn several percent every month. Compare against your own trend rather than a headline figure.
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