Customer Churn Cost Calculator

    The churn cost calculator estimates the annual revenue you lose to customer churn and how much a lower churn rate would be worth. Free, no sign-up, instant.

    • Free
    • No sign-up
    • Instant result
    • Benchmarks included

    Customer Churn Risk Calculator

    Calculate the financial impact of customer churn on your business

    How it's calculated

    Definition
    Churn cost is the recurring revenue that leaves with churned customers, plus the acquisition spend needed to replace them.
    Formula
    Customers lost per year = customers × monthly churn rate × 12. Churn cost = customers lost × average annual revenue per customer, plus customers lost × acquisition cost to replace them.
    Benchmark
    There's no universal benchmark; compare the result with your retention budget. If churn costs ten times what you spend on retention, the business case writes itself.

    Our take

    This is the number that gets CX budgets approved. Finance rarely reacts to an NPS drop, but it reacts to revenue walking out of the door.

    Improve this number

    Customer Analytics software built for this metric:

    Frequently Asked Questions

    How do I calculate the cost of customer churn?

    Multiply the customers you lose per year by the average annual revenue per customer, then add what it costs to acquire replacements.

    Is it cheaper to keep a customer than acquire one?

    Usually, because acquisition costs repeat for every replacement. Use your own acquisition cost in the calculator to see the gap for your business.