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Churn Impact
Small changes in churn create massive differences over time. Compare two scenarios side-by-side.
Reducing churn from 8% → 4% generates
+$42,619
cumulative revenue over 12 months · +178 customers
Churn Benchmarks (B2B SaaS)
Month-by-Month
| Mo | Customers (8%) | MRR (8%) | Customers (4%) | MRR (4%) | Δ MRR |
|---|---|---|---|---|---|
| 1 | 100 | $5,000 | 100 | $5,000 | $0 |
| 2 | 192 | $9,600 | 196 | $9,800 | +$200 |
| 3 | 277 | $13,832 | 288 | $14,408 | +$576 |
| 4 | 355 | $17,725 | 377 | $18,832 | +$1,107 |
| 5 | 426 | $21,307 | 462 | $23,078 | +$1,771 |
| 6 | 492 | $24,603 | 543 | $27,155 | +$2,552 |
| 7 | 553 | $27,635 | 621 | $31,069 | +$3,434 |
| 8 | 608 | $30,424 | 697 | $34,826 | +$4,402 |
| 9 | 660 | $32,990 | 769 | $38,433 | +$5,443 |
| 10 | 707 | $35,351 | 838 | $41,896 | +$6,545 |
| 11 | 750 | $37,523 | 904 | $45,220 | +$7,697 |
| 12 | 790 | $39,521 | 968 | $48,411 | +$8,890 |
Why churn is the highest-leverage metric
LTV = ARPU ÷ Churn — halving churn doubles LTV.
8% monthly churn = ~96% annual loss. At 4%, it's ~48%.
That compounds every month — by M12 you have 178 more paying customers.
What this means for you
High churn is quietly capping your growth.
At 8% monthly churn you're refilling a leaky bucket — much of your acquisition spend just replaces lost customers. Retention is your highest-leverage fix.
Find where customers drop off (onboarding, month 1, renewal)
Fix the top churn driver before spending more on acquisition
Instrument retention cohorts so you can see progress
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Churn impact summary