He botches the math. 20% monthly churn means you have to replace your customer b... | Hacker News

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		tlb on May 26, 2015 \| parent \| context \| favorite \| on: Why investors don’t fund dating He botches the math. 20% monthly churn means you have to replace your customer base 2.4 times over a year, not 8 times. But the conclusion is the same: CAC > LTV.

shasta on May 26, 2015 | [–]

I assume his formula (1+monthly_churn)^12 – 1 was based on a misremembering or misunderstanding of annual churn = 1 - (1-monthly_churn)^12.

andrew_null on May 26, 2015 | [–]

OP here. You're right, I'll update for math.

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