Calculate your customer churn rate, revenue churn, net churn, and projected customer counts. Know exactly where your SaaS stands and what to fix.
What MediaFast does
The free calculator gives you a rate. MediaFast finds the subreddits where your buyers already hang out and drafts rule-aware posts, so new signups keep outpacing the customers you lose.
Not sure which one fits? Compare every plan side by side further down this page.
How does your churn rate stack up against industry averages? Use these benchmarks to set realistic targets for your business.
B2B SaaS
3 to 5%
Monthly churn. B2B products typically see lower churn because of longer contracts, higher switching costs, and deeper integrations. The best B2B SaaS companies push this under 2%.
B2C SaaS
5 to 7%
Monthly churn. Consumer products see higher churn due to lower switching costs and more alternatives. Social apps and entertainment SaaS can see even higher rates. Focus on habit-forming features.
Enterprise SaaS
Under 1%
Monthly churn. Enterprise deals involve procurement, legal, and multi-year contracts. Once embedded, enterprise customers rarely leave. Net revenue retention often exceeds 120%.
Understanding where you fall in these benchmarks is the first step. Tools like MediaFast can help you find real conversations from churned users on Reddit, so you can understand the actual reasons people leave and fix them.
Lowering churn by even 1% can dramatically increase your revenue over 12 months. Here are five strategies that work.
Most churn happens because users never reach their 'aha moment.' Map out the shortest path to value and guide every new user there. Send a personal welcome email. Offer a quick setup call. The first two days determine whether a customer stays for two years.
Do not wait for customers to complain. Monitor usage data and reach out when engagement drops. A simple 'Hey, noticed you have not logged in this week, anything I can help with?' email saves more accounts than any discount.
Run exit surveys for every canceled account. Categorize the reasons. If 40% of churn is because of a missing feature, that feature just became your top priority. Data from cancellations is more valuable than data from happy customers.
Customers on annual plans are far harder to lose than monthly subscribers because there is no monthly cancel decision. Offer a meaningful discount for annual billing. The upfront commitment creates a psychological lock-in that benefits both sides.
Churned customers often share their frustrations on Reddit, Twitter, and forums before they ever tell you. Monitoring these conversations gives you unfiltered feedback you will never get from a survey. This is where you find the real problems to solve.
The segment cards above are monthly rules of thumb. For measured data, Recurly's churn benchmark research reports median annual churn across its subscription billing network (July 2026 data). Note these are annual figures, so they are not directly comparable to monthly targets without the compounding math below.
| Industry | Median annual churn |
|---|---|
| SaaS | 3.22% |
| Business services | 3.44% |
| Travel and hospitality | 3.91% |
| Digital media and entertainment | 4.14% |
| Ecommerce subscriptions | 4.25% |
| Education | 4.99% |
| All industries (overall) | 3.60% (2.34% voluntary + 1.25% involuntary) |
The voluntary vs involuntary split matters: about a third of the overall figure is involuntary churn (failed payments, expired cards), which you fix with dunning emails and card updaters, not with product work.
Annual churn is not monthly churn times 12, because each month you lose a percentage of a shrinking base. The formula this calculator uses:
Annual churn = 1 - (1 - monthly churn)^12
Worked example at 5% monthly churn: keep 95% of customers each month, so after 12 months you keep 0.95^12 = 54% of them. Annual churn is 1 - 0.54 = roughly 46%, not the 60% you get by multiplying 5% by 12. The same effect at 2% monthly gives about 22% annual, not 24%. Small monthly differences compound into huge annual gaps, which is why cutting monthly churn by even one point moves your 12-month projection so much.
Common questions about SaaS churn rates and how to calculate them.
For B2B SaaS companies, a monthly churn rate of 3 to 5% is considered average, while anything under 3% is great. Enterprise SaaS companies often achieve churn rates under 1%. B2C SaaS typically runs higher at 5 to 7% monthly. The key is to track your churn consistently and work on reducing it over time.
Customer churn measures the percentage of customers who cancel or stop using your product in a given period. Revenue churn measures the percentage of recurring revenue lost from existing customers. Revenue churn is often more important because losing one enterprise customer can have a bigger impact than losing several smaller accounts.
Annual churn is not simply monthly churn times 12. The correct formula is: Annual Churn = 1 minus (1 minus Monthly Churn Rate) to the power of 12. For example, a 5% monthly churn rate results in roughly 46% annual churn, not 60%. This accounts for the compounding effect of churn over time.
Net churn accounts for both lost customers and new customers gained during the same period. If you lose 10 customers but gain 15, your net churn is negative, meaning you are growing. Negative net churn is the goal for every SaaS business because it means your growth outpaces your losses.
Focus on five key areas: improve your onboarding to help users see value quickly, proactively reach out to at-risk customers before they cancel, build a feedback loop to address common complaints, offer annual plans with discounts to increase commitment, and monitor community discussions on platforms like Reddit to understand why customers leave. Tools like MediaFast can help you find those conversations.
MediaFast monitors Reddit for real churn conversations so you can act on them.
