Churn and Revenue Impact Calculator
Last updated: April 2026
Churn Inputs
The percentage of customers who cancel or stop paying each month. 5% monthly churn is roughly 46% annual churn.
%
MRR per customer for SaaS, or average monthly spend for subscription businesses.
£
%
How many new customers you acquire each month on average.
Total sales and marketing spend per month.
£
Implied average customer lifetime: 20 months
Customer LTV
£1,400.00
Gross-profit lifetime value per customer
Monthly Churned Revenue
£2,500.00
25 customers lost per month
Annual Churned Revenue
£30,000.00
Steady State Customers
500
At current acquisition pace
Churn Context
At 5.0% monthly churn, you are losing £2,500.00 of revenue every month. This is equivalent to losing 12.5 new customers worth of acquisition value each month from your existing base.
1% Churn Reduction Impact
Saves £6,000.00 per year.
Adds 125 steady-state customers.
Increases CLV by £350.00.
Equivalent to 5 new customers per month.
What if you reduced churn?
ChurnLifetimeCLVAnnual ChurnedSteady State
3.0%33.3mo£2,333.33£18,000.00833
4.0%25mo£1,750.00£24,000.00625
5.0%20mo£1,400.00£30,000.00500
6.0%16.7mo£1,166.67£36,000.00417
7.0%14.3mo£1,000.00£42,000.00357
MRR Waterfall
Starting MRR£50,000.00
Lost to churn/month-£2,500.00
New MRR from growth+£2,500.00
Net MRR change£0.00
What is customer churn rate?
Customer churn rate is the percentage of customers who stop using your product or service in a given period. Monthly churn rate is the most common measure for subscription businesses. A 5% monthly churn rate means roughly one in twenty customers cancel each month, which compounds into a much larger annual revenue drag.
How does churn affect customer lifetime value?
Customer lifetime value is driven by average monthly revenue, gross margin, and how long the customer stays. The simple subscription formula is monthly revenue per customer times gross margin times implied lifetime. Lower churn increases lifetime, which can dramatically increase CLV without changing your pricing.
Why does reducing churn matter?
Reducing churn improves revenue twice: you keep more of the revenue you already earned, and every new customer adds to a larger base instead of merely replacing lost customers. For SaaS and subscription businesses, a 1% reduction in monthly churn can be worth more than a large increase in acquisition spend.
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