---
title: "The pie equation"
description: "The formula for the maximum number of EFTs."
canonical: https://tomsharman.com/bookshelf/gym-launch-secrets/the-pie-equation/
updated: 2026-11-03
---

# The pie equation

> The formula for the maximum number of EFTs.

Alex Hormozi's framework, from Gym Launch Secrets, pp. 239 to 246.

Framework 15 of 33 from [Gym Launch Secrets](https://tomsharman.com/bookshelf/gym-launch-secrets/index.md) by Alex Hormozi. Category: Lead generation.

## The steps

1. **Count monthly sign-ups.** Referrals plus marketing.
2. **Find the monthly churn rate.** As a decimal.
3. **Divide sign-ups by churn.** 10 / 0.1 = 100 maximum EFTs.
4. **Change one input.** 20 sign-ups gives 200, 5% churn gives 200.
5. **Change both.** 20 sign-ups at 5% churn gives 400.

## Where it comes from

From chapter: Chapter 14, How Retention Multiplies Revenue, pp. 239–246

## The animation

24 seconds, 4:5, no sound.

- MP4: https://tomsharman-downloads-006143767029.s3.eu-north-1.amazonaws.com/downloads/bookshelf/gym-launch-secrets/the-pie-equation.mp4
- MP4, dark: https://tomsharman-downloads-006143767029.s3.eu-north-1.amazonaws.com/downloads/bookshelf/gym-launch-secrets/the-pie-equation-dark.mp4
- Still: https://tomsharman-downloads-006143767029.s3.eu-north-1.amazonaws.com/downloads/bookshelf/gym-launch-secrets/the-pie-equation.png
- Still, dark: https://tomsharman-downloads-006143767029.s3.eu-north-1.amazonaws.com/downloads/bookshelf/gym-launch-secrets/the-pie-equation-dark.png