Attrition Rate Calculator

Attrition rate: people who left during the period divided by people at the start of the period, multiplied by 100. If 30 out of 500 customers left in a month, your monthly attrition rate is 6%.

Annualised attrition: for monthly periods, we use the compound formula: 1 minus (1 minus monthly rate) to the power of 12. This accounts for the compounding effect and gives a more accurate annual projection than simply multiplying by 12.

Benchmarks: most SaaS businesses see monthly attrition rates between 3-8%. Best-in-class companies aim for under 3%. Around 20 to 40% of attrition is involuntary, caused by failed payments rather than active cancellations, and is recoverable through dunning.

Note: the attrition rate formula works identically for customer and employee attrition. We use customer-focused language here since ChurnWard is a SaaS tool, but the maths is the same. Looking for churn rate instead? Try our churn rate calculator.