Free tool
Enter your MRR, customer count, and monthly cancellations to see the real cost of churn on your business.
Cancellations ÷ Total customersThe percentage of your customer base that cancels each month. A healthy SaaS target is under 2%. Above 5% means you're losing customers faster than you can replace them.
1 − (1 − monthly churn)^12Compounded monthly churn over a full year. A 3% monthly churn compounds to 31% annual — meaning almost a third of your customers are gone within 12 months.
ARPU ÷ monthly churn rateHow much revenue the average customer generates over their lifetime. Reducing churn directly extends LTV — halving your churn rate doubles your LTV.
MRR × (1 − monthly churn)^12Your MRR in 12 months if churn continues at the current rate and no new customers join. This isolates the pure cost of churn on your revenue baseline.
Dropcause sends a one-click survey on every Stripe cancellation. See the reasons in a dashboard — no code required.
Try Dropcause free →For B2B SaaS, a monthly churn rate under 2% is considered healthy — that's around 22% annually. Best-in-class companies target under 1% monthly. Consumer SaaS typically sees higher churn. If you're above 5% monthly, you're losing customers faster than most businesses can replace them through growth alone.
Customer churn measures the percentage of customers who cancel. Revenue churn (or MRR churn) measures the percentage of MRR lost. They diverge when different customers pay different amounts — a small number of high-value cancellations can cause high revenue churn even with low customer churn. This calculator uses customer churn to derive MRR impact.
Because churn compounds. Each month you lose a percentage of a shrinking base. A 5% monthly churn doesn't equal 60% annual — it compounds to around 46%. The formula is: annual churn = 1 − (1 − monthly churn)^12.
LTV (lifetime value) = ARPU ÷ monthly churn rate. If your average customer pays £50/month and you have 3% monthly churn, LTV is £50 ÷ 0.03 = £1,667. Reducing churn has a multiplied effect: halving your churn rate doubles LTV.
No — the projected MRR figure shows what happens to your existing MRR if churn continues and no new customers join. This isolates the cost of churn. In practice, growth offsets churn on your MRR chart, which is why raw MRR growth can mask a serious underlying churn problem.
The most reliable starting point is knowing why customers are leaving. Without that, any fix is a guess. Collecting cancellation reasons — via a simple one-click survey — lets you prioritise the causes worth addressing. Dropcause automates this for every Stripe cancellation.