This tool illustrates is the effect of churn on the potential size of a subscriber base. Enter values in the top four fields and click the 'Calculate' button below. The answers appear in the bottom two fields.
'Percent of Maximum Size' -- the percent of the maximum achievable subscriber base for the values in the 'Adds Per Month' and 'Churn Rate' fields above;
a forecasting tool used to calculate how long it will take to
reach a certain subscriber base, displayed in the 'It will take' field.
For an example, let's assume you begin with zero, add 10,000 new activations per
month and expect 5% churn. Clicking the 'Calculate' button returns a maximum size (Maximum
Size) of 200,000. But how long will it take to go from zero
to 100,000 or 50% of the maximum size? Keeping the same entries in
the other fields, enter 50 in 'Percent of Maximum
Size', click 'Calculate'. The result shows it takes
14 months to reach 100,000 subs (50% of the 200,000 maximum size). It's also
interesting to note that it takes 90 months to reach 100% percent of the 200,000
max.