How it works
At the start of each month record the active cohort and its revenue, then reduce customers by the churn fraction. No replacement customers are added.
Input definitions
- Starting customers (whole number)
- Enter the value in the labeled unit.
- Recurring revenue per active customer per month
- Enter the value in the labeled unit.
- Monthly customer churn (%)
- Enter the value in the labeled unit.
- Months to model (1–120)
- Enter the value in the labeled unit.
A worked example
- Starting customers (whole number)
- 100
- Recurring revenue per active customer per month
- 20
- Monthly customer churn (%)
- 10
- Months to model (1–120)
- 3
Assumptions & limits
Planning model using entered costs and policies, not country-specific law or a forecast. Use one currency and consistent time periods.
Sources & review
Maintained by AnsRio. Methods and examples use automated checks; this does not imply independent professional certification.
Method updated 2026-10-17. Content checked against the stated method and examples. Our verification approach.
Common questions
Does this retention model include new customer acquisition?
No. It follows only the original cohort with a constant monthly churn rate. Fractional customer counts are expectations; new customers and expansion revenue need separate modeling.
How does Customer retention and recurring revenue cohort work?
At the start of each month record the active cohort and its revenue, then reduce customers by the churn fraction. No replacement customers are added.
What are the limits of Customer retention and recurring revenue cohort?
Planning model using entered costs and policies, not country-specific law or a forecast. Use one currency and consistent time periods.
How do I keep the full worksheet?
Run the tool and choose Download file. The on-page table is a preview and may show only the first 20 rows; the downloaded file contains the full result. CSV downloads escape spreadsheet formula prefixes. Inputs and files are processed on your device.