Churn rate calculator
Churn compounds. Three percent a month sounds small and removes a third of a cohort inside a year.
Monthly churn
3.000%
- Annual churn
- 30.616 %
- Monthly retention
- 97.000 %
- Cohort remaining after that many months
- 693.8
- Average customer lifetime
- 33.33 months
- Months for the cohort to halve
- 22.76
- Steady-state customer count Where new customers exactly replace churned ones.
- 1333
Show the working
- Customers at the start = 1000
- Customers lost = 30
- Months to project = 12
- New customers per month = 40
- Monthly churn = 30 / 1000 * 100 = 3
- Monthly retention = 100 - 3 = 97
- Annual churn = (1 - (97/100)^12) * 100 = 30.6158
- Cohort remaining after that many months = 1000 * (97/100)^12 = 693.842
- Average customer lifetime = 3 > 0 ? 100/3 : 0 = 33.3333
- Steady-state customer count = 3 > 0 ? 40 / (3/100) : 0 = 1333.33
- Months for the cohort to halve = 97 > 0 && 97 < 100 ? log(0.5, 97/100) : 0 = 22.7566
Values are shown to six significant figures here; the arithmetic itself runs on exact fractions and is only rounded where a number is printed.
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The formula
- annual churn = 1 - (1 - monthly churn)^12
- steady state = new customers per month / monthly churn
Steady state is the ceiling a business hits if acquisition and churn both stay flat. Growth requires moving one of them.