Step 1: Customer Base
Current metrics
Customer Base
5010,000
505,000
1%50%
Healthy Retention
B2B SaaS benchmark: 5% | Your rate: 5%
Lost ARR
$125,100.00
Annual revenue lost to churn
Lost MRR
$868.75
Monthly revenue impact
Replacement Cost
$21,175.00
CAC to replace churned customers
Total Annual Impact
$146,275.00
Lost revenue + replacement CAC
Net Revenue Retention
95.0%
Target: >100% with expansion
1% Churn Reduction
$25,020.00
Potential annual savings
Churn Rate vs Industry+0.0% vs median
Top: 2.5%Median: 5%Bottom: 10%
Retention Program Economics
Annual Retention Investment$300,000.00
Potential ROI of Retention-58.3%
Related Calculators
Calculator Knowledge Base and Scientific Documentation
Quick Reference
Quick Reference
The Scientific Model
The Scientific Model
Churn Impact Formula
Formula
Why this approach:
People Also Ask
People Also Ask
- What is a good churn rate for B2B?
- Churn rates vary significantly by industry. For B2B SaaS, top performers maintain 2.5% annual churn or lower, while the median is 5%.
- How do I calculate the true cost of churn?
- True churn cost includes both lost revenue (ARPU × time remaining in expected lifespan) AND the CAC required to replace the churned customer. This calculator accounts for both factors.
- What's the ROI of investing in retention?
- Studies show acquiring a new customer costs 5-25x more than retaining an existing one. Reducing churn by just 1% can significantly impact revenue, as shown in this calculator.