Churn & Retention
Turn 'we lost some users' into a churn rate, a retention rate, and an expected lifetime.
Your numbers
Results
How it works
Monthly churn = users lost ÷ users at start of month. Retention = 1 − churn.
Churn is the tax on everything else you do: it caps LTV, stretches payback, and quietly compounds. A 4% monthly churn sounds harmless until you annualize it — retention^12 — and realize you keep barely 60% of a cohort after a year.
The classic mistake is hiding churn behind growth: counting new signups in the denominator so the rate looks lower. Measure churn on the cohort that existed at the start of the period, and count only losses from that cohort.
Worked example
You start the month with 1,000 users and 40 of them cancel. Monthly churn = 40 ÷ 1,000 = 4%; retention = 96%. Compounded over a year, 0.96^12 ≈ 61% of the cohort remains — 4% a month quietly cost you nearly 4 in 10 customers. Expected lifetime = 1 ÷ 0.04 = 25 months.