What is one subscriber actually worth?
For gyms, boxes, memberships, and paid newsletters. One price, every month, until they cancel. See what one subscriber is worth over their whole stay, and what one point of churn costs across your whole base.
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Average stay (months) = 1 / Monthly churn rate. Subscriber lifetime value = Monthly price x Average stay x Profit margin
This number is the profit one member or subscriber brings you over their whole stay, not just this month. Churn sets the clock: if 4 in 100 members cancel each month, the average member stays about 25 months, because 1 divided by 0.04 is 25. A $99 membership at a 60 percent margin is then worth about $1,485, from 99 x 25 x 0.60. Think of each subscriber as a small annuity that keeps paying until churn turns it off. The trap is chasing new signups while the back door stands open. One point of churn moves the average stay by months, across the entire base, which is usually worth more than any month of new sales. The next question a smart operator asks: what would it cost to move churn one point, and what does this calculator say that point is worth?
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How the math works
The average stay is 1 divided by your monthly churn. If 4 in 100 members cancel each month, the average member stays about 25 months. Worth is the monthly price, times the months they stay, times your margin. A $99 membership at a 60 percent margin and a 25 month stay brings about $1,485 of profit per member.
Common questions
What is a gym member worth?
Monthly price, times the months they stay, times your margin. At $99 a month, a 60 percent margin, and 4 percent monthly churn, the average member stays about 25 months and brings roughly $1,485 of profit over their whole stay.
How do I calculate subscriber lifetime value?
Divide 1 by your monthly churn rate to get the average months a subscriber stays. Multiply that by your monthly price and your margin. The result is the profit one subscriber brings over their whole stay, which is the honest planning number for what you can spend to win or keep one.
What does churn cost my business?
One point of churn moves the average stay a lot. Going from 5 percent to 4 percent monthly churn takes the average stay from 20 months to 25, a quarter more lifetime profit from every subscriber. Rerun your numbers with churn one point lower and multiply the difference across your whole base.
Built by Finalysis, the financial intelligence platform for owner operators.
This is a planning shape, not a forecast. It uses averages, and real subscribers spread out around them, some gone in a month, some loyal for years. Churn also moves with seasons and price changes. Use this to see the size of the prize, then watch the real number. Nothing you type leaves your device.