Business5 min read
Customer Churn Rate: How to Work It Out Properly
Customer churn rate is customers lost ÷ customers at the start × 100. Losing 24 of 600 customers is 4% churn, which compounds to roughly 39% a year.
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- Business5 min read
Customer Lifetime Value: Formula and a Worked Example
₹1,500 per order, 4 orders a year for 3 years is ₹18,000 of revenue, ₹7,200 at a 40% margin. See the formulas and how to set it against acquisition cost.
- Business7 min read
Days Sales Outstanding: How Fast You Get Paid
DSO is receivables divided by credit sales, times the days in the period. ₹1.5 lakh on ₹9 lakh over 90 days is 15 days. Here is how to use it.
- Business5 min read
Discounted Selling Price: Work Out the Sale Price
Selling price = list price × (1 − discount rate). A 20% discount on ₹2,500 leaves ₹2,000, and two stacked discounts of 20% and 10% give 28% off, not 30%.
- Business6 min read
What Does an Employee Really Cost Per Hour?
A ₹6,00,000 salary works out to ₹385.65 an hour once benefits, overheads and leave are counted, not the ₹288.46 a simple division suggests.
- Business7 min read
Reorder Point: When to Restock Before You Run Out
Reorder point is daily demand × lead time + safety stock. At 18 units a day, 12 days and 75 spare, reorder at 291. Learn to set each part and avoid stockouts.
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