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Customer Lifetime Calculator

Calculate the average lifetime of your customers based on churn rate, a key metric for business planning and LTV calculations.

Customer Lifetime Calculator

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Percentage of customers who leave in a given time period

Time period over which the churn rate is measured

Understanding Customer Lifetime

Average Customer Lifetime indicates how long a typical customer continues to do business with you before churning. This metric is essential for calculating customer lifetime value (LTV) and planning business strategies.

Formula:

Average Lifetime (months) = 1 / Monthly Churn Rate

Interpreting Churn Rates:

  • Less than 2% monthly - Excellent retention, typical for established utilities or essential services
  • 2-5% monthly - Good retention, common for successful SaaS and subscription businesses
  • 5-10% monthly - Average retention, improvement needed
  • Above 10% monthly - Poor retention, indicates fundamental product or service issues

Note: This calculation assumes a constant churn rate over time. In reality, churn often varies based on customer cohorts, tenure, and seasonality. For more advanced analysis, consider cohort-based retention measurement.

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