How It Works
Three simple steps to get accurate calculations
1
Enter MRR & Churn
Input current MRR and monthly churn rate.
2
Add CAC & Margin
Set customer acquisition cost and margin.
3
Set Growth Rate
Enter new customers and ARPU.
4
See Impact
Get churn cost and retention value.
Loading SaaS Churn Impact on Profit Calculator...
Frequently Asked Questions
What is a good SaaS churn rate?
Depends on segment: SMB 3-7% monthly, Mid-market 1-3%, Enterprise <1%. Best-in-class: Under 2% monthly. Calculate both logo churn (customers) and revenue churn (MRR lost).
How is churn reduction valuable?
Each 1% churn reduction compounds: 5% to 4% monthly = 12 months vs 15 months average lifetime (+25% LTV). Over 1000 customers, that's massive. Often cheaper than acquisition.
What is a good LTV:CAC ratio?
Target 3:1 or higher. Below 1:1 = losing money on every customer. 3:1 = healthy. 5:1+ = potentially under-investing in growth. Payback period matters too (aim <12 months).
What causes SaaS churn?
Common causes: Poor onboarding (30%), lack of product adoption (25%), price sensitivity (15%), competition (10%), business failure (10%), poor support (10%). Most churn happens in first 90 days.
How do I reduce churn?
High-impact tactics: Fix onboarding (first 30 days critical), track product usage (intervene on low usage), proactive customer success, regular business reviews, fast support response, continuous value demonstration.
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Results are estimates for informational purposes only. Consult professionals for important decisions.