1. What is Lapse?

Lapse is a metric that measures the ratio of expired items to total items, typically expressed as a percentage. It's commonly used in inventory management, insurance policies, and subscription services to track expiration rates.

2. How Does the Calculator Work?

The calculator uses the simple lapse formula:

Where:

• \( Expired \) — Number of expired items/cases
• \( Total \) — Total number of items/cases

Explanation: The formula calculates what percentage of the total has expired or lapsed.

3. Importance of Lapse Calculation

Details: Lapse rate is a critical metric for businesses to understand customer retention, product shelf life, and policy renewal rates. It helps identify trends and areas needing improvement.

4. Using the Calculator

Tips: Enter the number of expired items and the total number of items. Both values must be positive numbers, and expired cannot exceed total.

5. Frequently Asked Questions (FAQ)

Q1: What's a good lapse rate?
A: This varies by industry. Lower is generally better, with rates below 5% considered excellent in most contexts.

Q2: How is lapse different from attrition?
A: Lapse specifically measures expiration/non-renewal, while attrition is broader, including all types of customer/product loss.

Q3: When should lapse be measured?
A: Typically measured at regular intervals (monthly, quarterly) to track trends over time.

Q4: Can lapse be greater than 100%?
A: No, since expired cannot exceed total, lapse rate should always be between 0-100%.

Q5: What factors affect lapse rates?
A: Product quality, customer satisfaction, pricing, competition, and economic conditions all influence lapse rates.