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How to calculate Average customer lifespan (months)

The Average customer lifespan (months) formula, with plain worked examples you can check yourself.

Average customer lifespan (months) = 100 ÷ c

Worked examples

c = 2% per monthAverage customer lifespan (months) = 50
c = 20% per monthAverage customer lifespan (months) = 5
c = 20% per monthAverage customer lifespan (months) = 5

How to use it

  1. Write down the values for each letter in the formula.
  2. Do the brackets first, then divide or multiply.
  3. Multiply by 100 to show the answer as a percentage.
  4. Compare the answer with last period or with a competitor to see if it is good or bad.

This formula belongs to Funding & Growth.

Related terms

Venture capitalBurn rateIPOPivotSeed fundingRunway

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