How it works
Expected contribution uses constant period revenue, contribution margin and a constant independent churn assumption. This form solves for period churn; enter the known quantities in Expected customer contribution (same currency), Period revenue per customer (same currency), Contribution margin.
Inputs and units
| Input | Example value | What to enter |
|---|---|---|
| Expected customer contribution (same currency) | 1,000 | Formula symbol: ltv. Enter a numeric value. Must be greater than zero. |
| 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. |
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.
- Expected customer contribution (same currency)
- 1,000
- Period revenue per customer (same currency)
- 100
- Contribution margin
- 50 %
Complete example results
- Period churn
- 5 %
Reading the result
The result solves for period churn 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 period churn 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