Question 1

What is considered a good churn rate for a SaaS company?

Accepted Answer

While it varies by market, a 'good' monthly churn rate for B2B SaaS is generally between 3% and 5%. Lower is always better for long-term growth.

Question 2

Does the calculator include new signups?

Accepted Answer

Standard churn calculations typically focus on the customers present at the beginning of the period to see how many were retained. New signups during the period are usually excluded from the baseline but are accounted for in the next period's calculation.

Question 3

Why is tracking churn so important?

Accepted Answer

Churn directly impacts your Customer Lifetime Value (CLV). If your churn rate is high, you must spend significantly more on acquisition costs just to maintain your current revenue level.

SaaS Churn Rate Calculator