Free retention economics tool
Customer Retention ROI Calculator
Measure the revenue and profit created by reducing customer churn, then compare that retained value with the cost of the retention program.
Simple calculator
Cohort modelEnter current and improved churn
Customer base
Churn improvement
Retention cost
Retention liftThe calculator runs the starting customer cohort under the current churn rate and improved churn rate. Incremental customer-months create retained revenue and gross profit, which are compared with the entered retention-program costs.
Advanced calculator
Customer-base forecastModel retention economics over time
Customer base & revenue
Churn & contribution
Retention investment
Optional replacement economics
Goal
Advanced retention modelTwo customer-base forecasts are run side by side using the current and improved churn rates. New customers are added to both scenarios equally. Incremental contribution comes only from the additional retained customer-months, then retention costs are deducted. Avoided replacement CAC is shown separately and can be included in ROI if selected.
Customer-base forecast
Same new-customer inflowCurrent churn vs improved churn
| Month | Current-churn customers | Improved-churn customers | Customer lift | Incremental revenue | Incremental contribution | Cumulative net benefit |
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Churn sensitivity
Current churn and costs held constantROI at different improved churn rates
| Improved monthly churn | Churn reduction | Incremental customer-months | Net contribution | Retention ROI | Ending customer lift |
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Customer-base sensitivity
Retention rates and costs held constantReturn at different starting customer counts
| Starting customers | Incremental retained revenue | Net contribution | Retention ROI | Additional customers at horizon | Avoided replacement CAC |
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Investment sensitivity
Before one-time setup and incentive costsMaximum monthly retention spend at different ROI targets
| Target ROI | Available gross benefit | Maximum total program spend | Less setup + incentives | Maximum monthly program cost |
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Scope
Retention ROI depends on causal churn reduction
This calculator assumes the improvement in churn is caused by the retention investment and that revenue, margin and customer quality remain comparable between scenarios. Avoided replacement CAC is optional because not every lost customer would necessarily be replaced. The model does not automatically include price changes, product mix shifts, voluntary versus involuntary churn, cohort-specific behavior, reactivation, taxes, fixed corporate overhead or retention effects on referrals and expansion revenue unless those effects are reflected in the inputs.