Most businesses do not know the true dollar cost of their churn. Enter three numbers below and find out what you are losing every year — and how much a small improvement in retention could save you.
Estimates are fine. Adjust as you go — results update instantly.
Based on the numbers you have entered.
Enter your customer count, revenue per customer, and churn rate to see your annual cost.
Churn tells you the cost of losing customers. CAC tells you the cost of getting them. Together they reveal whether your unit economics actually work. If you left the CAC field blank above, our CAC calculator can give you the number in a minute.
Use the CAC Calculator →This calculator estimates the direct annual cost of churn using a simple, defensible framework. There are two components.
Revenue lost. Customers who leave generate no further revenue. The annual revenue lost is the number of customers you churn each year multiplied by the annual revenue each one would have produced.
Replacement cost. Every customer you lose has to be replaced just to stay flat. Customer acquisition cost (CAC) is the average amount you spend to win a new customer — through marketing, sales, onboarding, and so on. If you provide your CAC, the calculator adds the annual cost of replacing churned customers to the total.
The 2-point reduction figure shows what a modest improvement in retention is worth annually. Most service-driven businesses can move their churn rate by 2 percentage points within a year of investing in retention — through better onboarding, faster issue resolution, proactive outreach, and other service-driven levers. We chose 2 points because it is conservative; many of our engagements deliver more.
What this calculator does not show:
The annual number is real. The full cost is bigger.
Most churn driven by service failures is preventable — once you can see where it is coming from. Let us help you find it.