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How to calculate churn rate in Excel and Google Sheets
Topic:SaaS metricsExcel & Google Sheets
=IFERROR((A2-B2)/A2*100,0)✓
Verified example
Computed by a real spreadsheet engine on the sample data below.
| StartCustomers | EndCustomers | ChurnPct |
| 1200 | 1140 | =IFERROR((A2-B2)/A2*100,0) |
| 1140 | 1095 | =IFERROR((A3-B3)/A3*100,0) |
| 1095 | 1080 | =IFERROR((A4-B4)/A4*100,0) |
=IFERROR((A2-B2)/A2*100,0)→5
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Step by step
- 1Set up a table: column A = customers at start of period, column B = customers at end of period, one row per month.
- 2In C2, enter the churn rate formula: =(A2-B2)/A2*100. This gives the percentage of customers lost.
- 3Wrap with IFERROR to handle months with no starting customers: =IFERROR((A2-B2)/A2*100,0).
- 4Copy C2 down for each month. Format column C as Number with 2 decimal places.
- 5For annual churn from monthly rates, compound: =1-PRODUCT(1-C2:C13/100) gives the annual churn rate given 12 monthly rates in C2:C13.
Tips
- Distinguish gross churn (customers lost) from net churn (customers lost minus new customers gained). The formula above is gross churn; net churn subtracts new acquisitions from the numerator.
- New customers who join and leave within the same period should not be counted in the starting cohort — track them separately to avoid artificially inflating churn.
- Plot churn rate as a line chart over 12+ months to spot seasonality or product-release effects more clearly than looking at a table of numbers.
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Frequently asked
What is a good churn rate?
It depends heavily on the industry. SaaS B2B targets are typically 1–3% monthly; consumer apps tolerate higher rates. Always benchmark against your specific segment.
How do I calculate revenue churn instead of customer churn?
Replace the customer counts with MRR (Monthly Recurring Revenue): (MRR at start − MRR at end) / MRR at start × 100. The formula structure is identical.
Is there a difference between churn rate and retention rate?
Retention rate = 1 − churn rate (or 100% − churn%). They are complementary; some teams find it easier to set retention targets (e.g. 97% monthly retention = 3% monthly churn).
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