Monthly retention review
A product began the month with 2,400 customers and lost 72 of them.
Inputs
- Starting customers: 2,400
- Customers lost: 72
Steps
- Churn = 72 / 2,400 = 3%
Result
- Monthly customer churn is 3%.
Calculate customer churn rate from the number of customers lost during a period and the starting customer base.
Result
Calculating the sample result.
Churn is one of the most important recurring revenue metrics because it directly shapes LTV, growth quality, and retention efficiency.
Inputs
Outputs
Divide customers lost by starting customers and express the result as a percentage.
Churn rate = customers lost / starting customers
Monthly retention review
A product began the month with 2,400 customers and lost 72 of them.
Inputs
Steps
Result
Because the starting base is the pool actually at risk of churning during the period.
Not in the standard starting-base churn formula. They affect ending customers, not the initial at-risk base.
Keep going
Calculate the percentage of starting customers retained after accounting for new customers added during the period.
Estimate customer lifetime value from ARPA, gross margin, and churn rate.
Calculate how recurring revenue from an existing cohort changes after expansion, contraction, and churn.