What is Customer Lifetime (Average Customer Lifespan)?
Customer Lifetime (Average Customer Lifespan) is the expected length of time an average customer remains active before churning, measured in the same period as your churn/retention (monthly, quarterly, annually).
It matters because lifespan is a core driver of customer economics—especially LTV/CLV, LTV:CAC, CAC payback period, and the sustainability of MRR/ARR growth under different churn scenarios.
Formula
Example
Assume your churn period is monthly and you track churn rate.
- Monthly churn rate: 5% Rightarrow Churn Rate = 0.05
- Average customer lifespan (months): Customer Lifetime = 1 / 0.05 = 20 months
- Average customer lifespan (years): 20 / 12 = 1.67 years
If you track retention rate instead:
- Monthly retention rate: 95% Rightarrow Churn Rate = 1-0.95 = 0.05
- Lifespan stays: Customer Lifetime = 1 / 0.05 = 20 months (≈ 1.67 years)
Frequently Asked Questions
I only know retention rate — how do I get customer lifespan?
Use the Retention rate option, or convert it to churn first:
Why does 5% monthly churn show 20 months — is that “accurate”?
It’s the standard expected-value model assuming a constant churn probability each period:
Should I use logo churn or revenue churn for this calculator?
Use logo/account churn to estimate customer lifespan. Revenue churn is for revenue retention metrics (GRR/NRR) and can mislead lifespan because expansion/contraction affects revenue, not whether the customer exists.
My churn is quarterly or annual — can I still estimate an average lifespan in months/years?
Yes. Pick the matching Churn period (Quarterly/Annually). The calculator converts the expected lifespan into months/years from that period’s churn assumption (constant per period).
Sources & Methodology