Cohort Revenue Calculator
Revenue from one cohort as it decays. Retention compounds, so 92 percent monthly leaves under a third of the cohort after a year, which is why small retention differences dominate everything else.
Also called: cohort analysis calculator, ltv cac calculator.
$4,864,620.53 over 24 months from 500 customers, against $2,250,000.00 of acquisition cost. 68 customers remain at the end and lifetime value per customer is $9,729.24.
How this is calculated
Each month the surviving share earns revenue and then decays again. Because retention compounds, the difference between 92 and 95 percent monthly is not three points but the difference between 37 and 54 percent of the cohort surviving a year. That is why retention work usually beats acquisition work, and why the payback month matters: a cohort that has not repaid its acquisition cost before it churns never will.
a cohort decays geometrically, so revenue in month t comes from the survivors, not the original count- N
- Cohort size
- r
- Monthly retention
Method and limits
What it assumes
- Constant retention and revenue per customer, which flatters: real retention curves flatten.
What it deliberately does not model
- Real cohorts churn fastest early and then stabilise, so constant retention understates the long tail.
- Expansion revenue from surviving customers is not modelled.
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Frequently asked questions
- What LTV to CAC ratio should I aim for?
- Three is the conventional target, with payback inside twelve months. Below one you are paying more to acquire a customer than they will ever be worth.