About the Average Customer Lifetime Calculator
What is the Average Customer Lifetime Calculator?
Average customer lifetime is how long a typical customer keeps buying before leaving. With constant churn, it is simply the inverse of the churn rate.
The calculator accepts monthly or annual churn, shows the lifetime in months and years, and tracks what share of a cohort is still active after 3, 6, 12, 24 and 36 months.
How to use the Average Customer Lifetime Calculator
- Churn Rate (%) (sample: 4)
- Churn Measured (sample: Per month)
- Average Revenue per Customer per Month (₹, optional) (sample: 800)
- Press Calculate Customer Lifetime (results also refresh as you type). The result card shows the Average Customer Lifetime, along with In years, Monthly churn used, Half of customers are gone by and Revenue per customer over the lifetime.
Formula used
Average lifetime = 1 ÷ Monthly churn rate
- Customers still active after m months = (1 − monthly churn)ᵐ
Half of a cohort is gone after about ln 0.5 ÷ ln(1 − churn) months.
Worked example
These are the sample values already filled in the calculator above, and the result it returns for them:
| Input | Sample value |
|---|---|
| Churn Rate (%) | 4 |
| Churn Measured | Per month |
| Average Revenue per Customer per Month (₹, optional) | 800 |
| Result | Value |
|---|---|
| Average Customer Lifetime | 25 months |
| In years | 2.08 years |
| Monthly churn used | 4% |
| Half of customers are gone by | 1y 5m |
| Revenue per customer over the lifetime | ₹20,000 |
Tips for using the Average Customer Lifetime Calculator
- Churn is usually highest in the first months; improving onboarding lengthens lifetimes most.
- Multiply lifetime by monthly gross profit per customer for LTV.