Calculator
What a point of churn is worth.
Average client lifetime in months is one divided by monthly churn. Cutting churn from 10% to 3% turns a 10-month client into a 33-month client, 3.3 times the lifetime value. Run it with your numbers.
10.0 mo
Average client lifetime today
33.3 mo
Lifetime at target churn
$15,000
Lifetime value per client today
$50,000
Lifetime value at target
$4,200,000
Additional lifetime revenue across your current 120 clients if churn moves from 10% to 3%. That is 3.3× the lifetime value per client.
Simple model: lifetime = 1 ÷ monthly churn, lifetime value = price × lifetime. It ignores price changes and resells, which is why the real number is usually larger. Annualised run rate today, for reference: $864,000.
