Churn Rate Calculator
Lifespan is one divided by churn.
Monthly churn
8%
63.2% annually
Lifespan is one divided by churn, so improvements compound non-linearly. Cutting churn from 8% to 7% adds $46.43 of lifetime value per customer — usually far more than the equivalent effort spent on acquisition.
How the Churn Rate Calculator works
Lifespan is one divided by churn, so improvements compound non-linearly. Cutting monthly churn from 8% to 7% adds more lifetime value than cutting it from 4% to 3% — and both are usually cheaper than acquiring the equivalent customers.
Not financial advice. Marketplace fees change, and they vary by country, plan and seller status. Every rate here is an editable default, not a quoted price — check the platform's current fee schedule before you price a product against it. This is not tax or business advice.
Frequently asked questions
How do I calculate churn rate?
Customers lost in a period divided by customers at the start of it. Annual churn is not twelve times monthly — it is one minus (one minus monthly) to the twelfth.
How does churn relate to lifespan?
Average lifespan is one divided by churn. At 4% monthly churn that is 25 months; at 8% it is 12.5 months. Halving churn doubles lifespan and therefore doubles lifetime value.
Why is reducing churn better than acquiring?
Because it raises the value of every existing customer at once and compounds. Acquisition adds one customer per unit of spend; retention improves all of them.
What causes churn?
For ecommerce, most often that the customer simply forgot. Replenishment reminders, subscriptions and post-purchase sequences address more churn than product improvements typically do.