LTV Calculator
Calculate Customer Lifetime Value — the total revenue you can expect from a single customer account.
Average monthly revenue per customer
Your LTV
Customer LTV
$800
Expected gross profit of $800 per customer over their lifetime.
$50 × 80% ÷ 5%
Monthly ARPU
$50.00
Gross Margin
80.0%
Monthly Churn
5.0%
Avg Customer Lifetime
20.0 months
Want to understand what this number means for your overall growth?
Run a free Growth Audit to review your ROAS, CAC, LTV, margin, and ad spend together.
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Example Calculation
ARPU = $50/month, Gross Margin = 80%, Monthly Churn = 5%.
Expected lifetime value is $800. Average customer lifetime = 1 ÷ 5% = 20 months.
How to Interpret LTV
LTV represents total gross profit expected from a customer over their relationship with your business.
LTV is highly sensitive to churn. Reducing monthly churn from 5% to 3% increases average lifetime from 20 to 33 months.
Common Mistakes
- ✕Using revenue instead of gross profit.
- ✕Mixing monthly and annual churn periods.
- ✕Ignoring expansion revenue from upsells.
- ✕Treating LTV as a guaranteed figure.
Frequently Asked Questions
A ratio of 3:1 or higher is a commonly cited benchmark for SaaS businesses. Below 1:1 means you spend more to acquire customers than they generate in gross profit.