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Analytics
LTV Calculator
Customer lifetime value for SaaS and subscription businesses.
Results
- Customer Lifetime Value (LTV)$980
- Average customer lifespan25.0 months
- LTV : CAC ratio4.90 : 1
Verdict: Healthy — strong unit economics.
About this tool
Enter ARPU, gross margin, monthly churn and CAC. Get customer lifetime value, average customer lifespan and the LTV:CAC ratio investors look at — with a verdict on whether your unit economics are healthy.
What it does
- •LTV from ARPU, margin and churn
- •Average customer lifespan
- •LTV : CAC ratio with verdict
- •Standard SaaS formula
Use cases
- ★Modelling unit economics
- ★Setting an upper bound on CAC
- ★Showing investors a healthy LTV:CAC
FAQ
How is LTV calculated?
LTV = (ARPU × gross margin) ÷ monthly churn rate. It assumes steady-state churn and excludes expansion revenue.
Does this account for expansion revenue?
No — this is the standard simple LTV. Account-expansion-adjusted LTV is higher and best modelled in a dedicated cohort spreadsheet.