How it works
Expected contribution uses constant period revenue, contribution margin and a constant independent churn assumption. This form solves for expected customer contribution (same currency); enter the known quantities in Period revenue per customer (same currency), Contribution margin, Period churn.
Inputs and units
| Input | Example value | What to enter |
|---|---|---|
| Period revenue per customer (same currency) | 100 | Formula symbol: revenue. Enter a numeric value. Must be greater than zero. |
| Contribution margin | 50 % | Formula symbol: margin. Enter the percentage as a number: for 15%, enter 15. Must be greater than zero. Allowed range: 0.001–100. |
| Period churn | 5 % | Formula symbol: churn. Enter the percentage as a number: for 15%, enter 15. Must be greater than zero. Allowed range: 0.001–100. |
Worked example
Show example inputs and results
This example is generated by the same calculation engine using the starting values in the form. Your own inputs produce your own result.
- Period revenue per customer (same currency)
- 100
- Contribution margin
- 50 %
- Period churn
- 5 %
Complete example results
- Expected customer contribution (same currency)
- 1,000
Reading the result
The result solves for expected customer contribution (same currency) from the entered quantities. Check the result unit and the formula conditions before using it.
Questions and answers
Can I use the example values for my own calculation?
The example values illustrate the calculation. Replace every input with your own information, especially dates, rates and the selected operation.
When can I use the expected customer contribution (same currency) result?
This simple model excludes growth, discounting, acquisition cost and cohorts. Revenue and churn need the same period; the result does not guarantee future earnings. All monetary inputs must use the same currency; currency conversion, tax and automatic fees are excluded.
Why are some results rounded?
Results display up to 8 decimal places. Calculations use the unrounded values; very small values use scientific notation. JavaScript floating-point arithmetic can introduce tiny rounding differences.
Are my inputs sent to a server?
The calculator processes inputs in your browser. Its code does not send your values to a server.
Method sources: openstax.org