Business Models
Churn & Retention Calculator
Translates a monthly churn rate into the two numbers that matter: how long the average customer stays, and what they’re worth over that lifetime.
Inputs
- Monthly churn — Share of customers who cancel each month.
- Revenue per customer / month — Average monthly revenue from one customer.
- Gross margin — Share of that revenue left after serving them.
How to use this calculator
- Enter your monthly churn rate, revenue per customer, and gross margin.
- The tool converts churn into average lifetime and lifetime value.
- Small churn changes swing LTV hugely. This is where retention work pays off.
What each term means
- Churn
- The share of customers who cancel each month.
- Retention
- The mirror of churn: the share who stay.
- Customer lifetime
- How long the average customer stays, equal to 1 ÷ churn.
Educational disclaimer: Outputs are simplified educational estimates built from the numbers you enter — they are not financial, legal, tax, or investment advice, and real decisions deserve verified figures and qualified professionals.