LTV Calculator
LTV Calculator
Calculate SaaS customer lifetime value (LTV) from ARPU and churn. Free LTV calculator for founders.
For demonstration purposes only. Estimates are illustrative and do not represent a formal valuation.
How it works
What is the LTV Calculator?
LTV estimates total revenue from an average customer over their relationship with your product. Compare LTV to CAC to judge unit economics.
Formula
LTV = ARPU × Customer Lifetime (months)
Customer lifetime = 1 ÷ monthly churn rate. Multiply by average monthly revenue per customer.
Worked example
Inputs: $60 ARPU · 4% monthly churn
- Lifetime = 1 / 0.04 = 25 months
- LTV = $60 × 25 = $1,500
LTV = $1,500
Benefits & benchmarks
- LTV:CAC ratio of 3:1 or higher is a common target
- Higher retention increases LTV without new acquisition
Frequently asked questions
What is LTV in SaaS?+
Lifetime value is the total revenue expected from a customer before they churn.
What is a good LTV:CAC ratio?+
Many SaaS businesses target 3:1 or better — you earn $3 in LTV for every $1 spent acquiring a customer.
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