What this calculator does
A user base rarely just grows: it grows and shrinks simultaneously, as new users arrive and existing ones leave. Looking only at new signups tells an incomplete, overly rosy story; this calculator separates the acquisition rate from the churn rate and combines them into the net figure that actually describes what happened to the total.
The distinction matters most when acquisition looks strong but churn is quietly rising alongside it. Two businesses can report the same headline “18% growth” while one is acquiring efficiently and the other is running hard just to replace who it is losing.
The formula
Ending users is starting users plus new users minus churned users. Net growth rate applies the same starting-to-ending comparison used throughout this category. Gross new-user rate and churn rate are each measured independently against the same starting base, which is what makes them directly comparable to each other, and lets a shrinking net figure be traced to whichever side of the ledger is driving it.
| Term | Meaning |
|---|---|
| Starting users | The user or customer count at the beginning of the period. |
| New users | Users or customers added during the period. |
| Churned users | Users or customers lost during the period. |
| Net growth rate | (Ending − starting) ÷ starting × 100. |
| Churn rate | Churned users ÷ starting users × 100. |
The inputs explained
| Field | What to enter |
|---|---|
| Starting users | The user or customer count at the start of the period. |
| New users this period | How many new users or customers were added during the period. |
| Churned users this period | How many users or customers were lost (churned) during the same period. |
When to use it
Separating acquisition success from retention problems
A net growth rate that has stalled despite strong new-user numbers points squarely at rising churn, not a marketing or acquisition problem: this split shows which lever actually needs attention.
Reporting growth honestly to a board or investor
Quoting gross new users alone overstates the picture whenever churn is material. The net figure, with both components shown, is the harder but more accurate number to report.
Setting an acquisition target that accounts for expected churn
If churn is known to run around a certain rate, the new-user target needed to hit a net growth goal has to be set above the net goal itself, to cover the churn that will happen regardless.
Comparing user growth to revenue growth
User count and revenue do not always move together: a business can grow its user base while average revenue per user falls, or vice versa. Comparing this figure against a revenue-based growth calculator surfaces that gap.
Worked examples
Every figure in the tables below is produced by this page’s own calculator at build time, so the numbers and the tool always agree. Select any row to load that scenario.
How net growth responds to rising churn, acquisition fixed at 900 new users
A steady 900 new users against a starting base of 5,000, with churn increasing.
| Churned users | Ending users | Net growth rate | Churn rate |
|---|---|---|---|
| 0 | 5,900 | 18.0% | 0.000% |
| 200 | 5,700 | 14.0% | 4.00% |
| 400 | 5,500 | 10.0% | 8.00% |
| 600 | 5,300 | 6.00% | 12.0% |
| 900 | 5,000 | 0.000% | 18.0% |
| 1,200 | 4,700 | -6.00% | 24.0% |
How net growth responds to acquisition, churn fixed at 400
A steady 400 churned users against a starting base of 5,000, with new-user acquisition increasing.
| New users | Ending users | Net growth rate | Gross new-user rate |
|---|---|---|---|
| 200 | 4,800 | -4.00% | 4.00% |
| 400 | 5,000 | 0.000% | 8.00% |
| 600 | 5,200 | 4.00% | 12.0% |
| 900 | 5,500 | 10.0% | 18.0% |
| 1,200 | 5,800 | 16.0% | 24.0% |
| 1,600 | 6,200 | 24.0% | 32.0% |
Questions
Why show gross new-user rate and churn rate separately from net growth?
Because two very different situations can produce the same net growth figure: strong acquisition with high churn, or modest acquisition with low churn. The separate rates show which situation actually applies.
Can net growth be negative even with new users arriving?
Yes: whenever churned users exceed new users in the period, the ending count falls below the starting count despite genuine new signups, which the net growth rate will correctly show as negative.
How is churn rate different from a churn rate measured monthly versus annually?
This calculator measures churn against whatever period the starting, new and churned figures cover. A monthly churn rate and an annual churn rate for the same underlying behaviour will look very different in size, so always match the period across all three inputs.
Should “new users” include users who churned and came back?
That depends on how your business defines a returning user. Some track reactivations separately from new signups; if yours does, decide once whether reactivations count as “new” for this calculation and apply that choice consistently period to period.
Does this work for revenue-based customer metrics too, like net revenue retention?
The same starting-plus-additions-minus-losses structure underlies net revenue retention, but that metric typically also accounts for expansion revenue from existing customers, which this calculator does not include. For a pure revenue view, see the revenue growth calculator instead.
For the revenue side of the same underlying business, see the revenue growth and target planner. For the combined health of growth and profitability, use the Rule of 40 calculator.