Churn Rate Calculator

What is churn rate? Churn rate is the percentage of customers you lose in a given period — typically a month. For subscription brands, churn is customers who cancel. For non-subscription ecommerce, it is customers who don't return within a defined repeat-purchase window (typically 90 or 180 days). Either way, churn directly erodes revenue and forces you to constantly acquire new customers just to stay flat.

This calculator computes your monthly churn rate, annualizes it using compound math (not simple multiplication, which understates the problem), and shows the revenue impact. A 6% monthly churn rate sounds manageable until you realize it compounds to over 50% annual churn — meaning you lose half your customer base every year and need to replace them entirely through acquisition.

The scenario table models the impact of reducing churn by 1, 2, and 3 percentage points, showing how many additional customers you retain and the resulting revenue saved. For most ecommerce brands, a 1% reduction in monthly churn is worth tens of thousands in annual revenue — often more than the cost of the retention program that achieves it.

Effective churn reduction strategies include improving the onboarding and first-purchase experience, implementing post-purchase email flows, offering subscription or auto-replenishment options for consumable products, building a loyalty program with meaningful rewards, proactive win-back campaigns triggered at the first sign of disengagement, and simply asking churned customers why they left. The insights from exit surveys alone can reveal fixable issues driving preventable churn.