Customer Churn Rate by Cohort Calculator

Analyze customer retention by cohort. Track how many customers from each group remain active over time and calculate cohort lifetime value.

Month N Retention = Starting Customers × (1 - Churn Rate 1) × ... × (1 - Churn Rate N) | Cohort Revenue = Sum of (Remaining Customers × Revenue) each month
Example: 1000 customers, Month 1-6 churn: 10%, 8%, 6%, 5%, 4%, 4%, $50/mo revenue. Month 1: 900 (90%), Month 3: 756 (75.6%), Month 6: 654 (65.4%). 6-month cohort revenue: $261K. Avg LTV: $261 per customer.

What is cohort analysis?

Cohort analysis segments customers by signup date (cohort) and tracks their behavior over time. This reveals how different customer groups behave, showing if newer customers are more or less likely to churn than older ones. It's essential for understanding if improvements actually work.

How do I read a cohort churn table?

Each row represents a cohort (month they joined), each column is months since signup. The values show the % of customers who churned in that specific month. Look for patterns: if later months show higher churn, there's a retention problem. If newer cohorts are better, your product improved.

What is a good cohort retention rate?

Good cohort curve: Month 1: 85-90%, Month 3: 70-80%, Month 6: 55-70%, Month 12: 40-60%. The "smile" curve (churn decreasing then increasing) may indicate product-market fit issues. Top SaaS companies maintain 60%+ at Month 12.

Why do some cohorts perform better?

Newer cohorts may have: better onboarding, improved product features, different marketing messaging, price changes, competitive landscape shifts, or seasonal differences. Compare cohorts to identify what's working and what needs improvement in the customer journey.

How do I calculate cohort LTV?

Cohort LTV = Sum of (Revenue retained each month from that cohort). Track cumulative revenue per cohort over time. Compare cohorts to see if improvements in acquisition or retention are translating to higher LTV. This informs how much to spend on acquisition.