## Your inputs

### Customers at start of period
Total active customers at the beginning of the measurement window.

### Customers lost during period
Customers who canceled or didn't renew during the window.

### Period length (months)
How many months the measurement window covers.

### Reset to example values

### Annual churn rate
15.1%

### Monthly churn rate
1.4%

### Average customer lifetime
6.2 years

## Logo churn vs revenue churn
Not all churn is created equal. Logo churn counts the number of customers who cancel — one customer out, one tick on the counter, regardless of how much they were paying. Revenue churn measures the dollars that walk out the door. A company with 5% logo churn rate and 2% revenue churn rate is losing its smallest accounts, which is a very different problem than a company with 2% logo churn and 8% revenue churn — that company is losing its biggest ones.

This churn rate calculator focuses on logo churn because it's the most universal starting point. But if you're making strategic decisions about retention spend, always pair logo churn with revenue churn and [net revenue retention](/content/tools/saas-calculators/nrr/index.html) to get the full picture. A high logo churn rate paired with strong NRR can actually be healthy — it means your expansion revenue from remaining customers more than covers the lost revenue from departing ones.

### Monthly vs annual churn rate
Monthly churn and annual churn are not interchangeable. A 3% monthly churn rate doesn't mean 36% annual churn — it means about 31% annual churn because the base shrinks each month. The compounding effect is what makes churn so destructive: you're losing customers from an already-shrinking base. This churn rate calculator converts between monthly and annual automatically so you can see both frames at once.

## How churn destroys compounding growth
Growth and churn are in a tug of war, and churn has a structural advantage: it compounds against you. If you're adding 5% new customers per month but losing 4% to churn, your net growth is only 1%. That means you need to double your acquisition volume just to get to 2% net growth. The math gets worse as the customer base grows because churn scales with the base while acquisition often doesn't.

This is why reducing churn rate is almost always higher-leverage than increasing acquisition. Every percentage point you cut from churn improves [customer lifetime value](/content/tools/saas-calculators/clv/index.html), improves your [LTV:CAC ratio](/content/tools/saas-calculators/ltv-cac/index.html), and accelerates net [MRR](/content/tools/saas-calculators/mrr/index.html) growth. It's the single most impactful metric a B2B SaaS company can move.

## B2B SaaS churn benchmarks by stage
Churn benchmarks vary significantly by company stage, ACV, and go-to-market motion. For B2B SaaS with ACV between $10K and $100K, here are the median ranges we see across daydream's client base and public benchmark data in 2025-2026:

- **Seed to Series A**: 3-5% monthly logo churn rate is common. Product is still evolving, ICP isn't locked, and early customers often aren't the right long-term fit. The goal at this stage is to get churn under 3% before Series A, which usually means tightening the ICP rather than improving the product.
- **Series A to Series B**: the target is under 2% monthly or under 15% annual churn rate. Companies consistently below this line are demonstrating product-market fit in the retention data, not just the acquisition data. This is where investors start paying attention to NRR alongside churn.
- **Series C and beyond**: best-in-class B2B SaaS companies run below 1% monthly logo churn. At this stage, revenue churn should also be negative — meaning expansion from existing customers exceeds the revenue lost from churned ones. That's the definition of a durable growth engine.

## Early warning signs of rising churn
By the time a customer cancels, the decision was made weeks or months ago. The leading indicators of churn are usage-based: declining login frequency, support ticket volume dropping (they've stopped trying to make it work), and shrinking seat count. If you're tracking these signals monthly, you can intervene before the churn event and shift the outcome.

Other warning signs include requests for month-to-month billing (a downgrade from annual), delayed renewals, and the departure of the internal champion who bought your product. The companies with the lowest churn rate aren't the ones with the best product — they're the ones with the best early warning systems and the fastest response times when a signal fires.