Tools/Retention
Churn cost
What a leaky month actually costs, and how many new buyers you need just to stand still.
The leak
$71
MRR walking out this month
- Seats to replace
- 2
- Seats lost in a year
- 17
- Current MRR
- $1,176
- Year of that leak
- $847
You have to find 2 new paying customers every month just to stay flat. Growth starts after that.
Growth starts after the leak
Monthly seats lost = customers × churn. That is how many new paying people you need before MRR can rise. Early on, 3–7% a month is common. The work is talking to the ones who left.
Worked example: 24 customers at $49. $1,176 MRR. At 6% churn you lose about 1.4 seats and $71 this month. Over a year that is roughly 17 seats and $850 of MRR you have to replace just to stand still.
FAQ
Questions people get stuck on
What is a good churn rate with 20 customers?
With twenty people, one cancel is 5%. That is a conversation, not a dashboard. Talk to the person who left before you hire a “retention” tool.
Do annual plans hide churn?
They delay it. Count logo churn when the contract ends, and still watch who stops using the product in month two.
Should I include people on a free plan?
No. Free users who leave teach you about free users. This calculator is for people who paid.
How do I lower it?
Ask who left. Fix the job they hired you for. Do not add a feature to avoid the email.