Churn cost calculator: what cancellations cost and what saves are worth
Every cancellation takes a customer's future profit with it. Enter your churn and price to see that cost and how much a better answer to cancellation requests is worth.
Customers lost per month
50
Average customer lifetime
20 months
Lifetime value per customer
$1,600
Value of saved customers
$8,000
The last figure is the lifetime value of the customers a save rate keeps each month. Even a small save rate is worth a careful, friendly reply to every cancellation request.
Questions
What is churn?
Churn is the share of customers who cancel in a period. Monthly churn of 5 percent means one in twenty customers leaves each month.
How is customer lifetime worked out?
Divide one by the monthly churn rate. At 5 percent churn the average customer stays for 20 months.
What is lifetime value here?
It is the monthly price times your gross margin times the average lifetime in months. It shows the profit one customer brings before they leave.
What is a realistic save rate?
Teams that ask why and offer a pause or a cheaper plan often keep 5 to 15 percent of cancellation requests. Start low and measure your own.
How can support lower churn?
Answer quickly, fix repeat problems, ask why people leave and offer a fitting alternative before you process a cancellation.
Link to this page
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<a href="https://flatdeskfinal.vercel.app/free-tools/churn-cost-calculator">Churn cost calculator</a>Guides that go with this tool
- Handle a cancellation requestHow to handle a cancellation request: ask why, offer a real alternative, make leaving easy and learn from every reason so fewer customers want to go.
- Handle tickets after a price increaseHow to answer customers after a price increase: clear replies, grandfathering, who to help and how to keep customers without discounting by reflex.
- Handle a customer who asks for a discountHow to respond when a customer asks for a discount: when to say yes, how to say no kindly, and a short rule set so every agent answers the same way.
- Keep support steady after an acquisitionHow to run customer support through an acquisition or merger: tell customers early, keep contact details stable, merge tools carefully and watch the signals.
- Support a SaaS price change with grandfatheringHow to run support when you grandfather existing customers on a price change: explain who keeps what, answer edge cases and avoid promises you cannot keep.
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- Handle a customer who asks to downgrade their planHow to respond when a customer wants a cheaper plan: confirm what they need, explain what changes, make the move easy and keep the relationship.
- Offer a pause instead of a cancellationWhen and how to offer a subscription pause to a customer who wants to cancel, so you keep the relationship without pressuring them.
- Handle a request to extend a free trialHow to respond when a customer asks for more trial time: find the blocker, decide with a simple rule, set a firm new date and follow up before it ends.
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