How much does customer churn actually cost?

Churn costs you the lost annual recurring revenue plus the roughly $2 it takes to replace every $1 of it through new acquisition. The median new-customer CAC ratio is $2.00 of sales and marketing spend per $1 of new ARR (Benchmarkit 2025). That replacement multiple is why retention is usually the cheapest revenue you will book this year.

What is a good gross retention rate?

Elite gross revenue retention is 92% or higher, against a market median near 88% that has slipped from 90% over three years (Benchmarkit 2025; SaaS Capital 2025). Gross retention caps your growth, because no amount of new sales outruns a leaky base.

What is net revenue retention and what is a good number?

Net revenue retention measures how much recurring revenue your existing customers generate year over year, including expansion. Elite is 120% or higher versus a median near 101% (Benchmarkit 2025), meaning the best companies grow even with zero new logos.

Is it cheaper to keep a customer or acquire a new one?

Keeping one is far cheaper, because replacing churned revenue costs roughly twice what the revenue was worth. Retention compounds. Acquisition resets the meter every quarter.

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Churn Cost Calculator

Every renewal is revenue you already won. Price what gross churn takes out of the business each year, and what stopping the leak is worth.

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