Churn Rate & LTV Calculator
Enter your monthly customer and revenue numbers to get customer churn, gross and net revenue churn, average lifetime and LTV in one view.
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SaaS Unit Economics: Churn, Retention and Lifetime Value
Customer churn is the share of customers who cancel in a period: customers lost ÷ customers at the start of the period. Revenue churn measures the same event in dollars, which matters more because losing one enterprise account can outweigh fifty self-serve cancellations. Healthy self-serve SaaS typically runs 3–5% monthly logo churn; mid-market and enterprise products should sit under 1%.
Net revenue retention is the metric investors actually underwrite. It subtracts expansion revenue — upgrades, seat growth, usage overages — from churned and downgraded revenue. When expansion outpaces losses you get negative net churn and NRR above 100%, meaning the existing customer base grows without any new logos. Anything above 110% is considered best in class.
Lifetime value follows directly from churn: average customer lifetime is 1 ÷ monthly churn rate, so 4% monthly churn implies a 25-month lifetime. Multiply by ARPU and gross margin for a defensible LTV, then compare it with fully-loaded customer acquisition cost. An LTV:CAC ratio of 3:1 or better with payback under 12 months is the usual bar. If churn is high, no amount of acquisition spend fixes the model — improving onboarding activation, adding annual billing and running proactive save offers on at-risk accounts lowers churn faster than any paid channel raises volume.
Frequently asked questions
Self-serve SaaS commonly sees 3–5% monthly customer churn, while B2B products with annual contracts should target under 1%. Compare against your own trend rather than an industry average.