Churn to LTV Impact Calculator
The relationship is hyperbolic, not linear.
Lifetime value gained
$149.83
per subscriber, from 6% to 4%
Lifetime value is contribution divided by churn, so the relationship is hyperbolic rather than linear — cutting churn from 6% to 4% raises lifetime value by 50%, not by the 2% difference.
How the Churn to LTV Impact Calculator works
Lifetime value is contribution divided by churn, so the relationship is hyperbolic. Cutting churn from 6% to 4% raises lifetime value by half — not by the two percentage points the change looks like.
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 much is a point of churn worth?
It depends where you start. Going from 10% to 9% raises lifetime value by 11%; going from 3% to 2% raises it by 50%. The lower your churn, the more each point is worth.
Should I invest in retention or acquisition?
Retention improvements apply to every customer at once and compound; acquisition adds one customer per unit of spend. At most stages retention wins on the arithmetic and loses on the org chart.
How do I value a retention project?
Multiply the lifetime value gain per customer by the size of the base. That figure is what the project has to cost less than.
Does this work for ecommerce too?
Yes — substitute repeat purchase behaviour for subscription churn. The maths is identical, only the measurement is harder.