LTV Calculator
SaaS LTV & customer value calculator
Calculate customer lifetime value, ARPU, and valuation per customer. See exactly how many customers you need to hit your next valuation milestone — instant.
For demonstration purposes only. Estimates are illustrative and do not represent a formal valuation.
Enter your customers, plan price and churn — then hit Calculate.
Your customers
How it works
What is the SaaS Customer Value Calculator?
This calculator shows how much each customer is worth over their lifetime and how customer economics roll up into company valuation. Essential for founders optimizing pricing, churn, and acquisition.
Formula
LTV = ARPU × Customer Lifetime (months)
ARPU is MRR divided by customers. Customer lifetime is 1 ÷ monthly churn rate. Company valuation uses ARR × an industry-adjusted multiple.
Worked example
Inputs: 1,000 customers · $50/mo ARPU · 5% monthly churn · B2B SaaS
- MRR = 1,000 × $50 = $50,000
- Lifetime = 1 / 0.05 = 20 months
- LTV = $50 × 20 = $1,000 per customer
- Valuation ≈ $3.84M at 6.4× ARR
Valuation per customer ≈ $3,840
Benefits & benchmarks
- Healthy B2B SaaS churn is often under 5% monthly for early stage
- LTV should typically exceed CAC by 3× or more
- ARPU benchmarks vary widely: $30–$200+ for SMB to mid-market
Industry ARR multiple benchmarks
Typical ARR multiples used in SaaS valuation models. Actual deals vary by growth, churn, margins, and market conditions.
| Industry | Base multiple | Typical range | Growth expectation | Churn benchmark |
|---|---|---|---|---|
| Agentic AI | 15× | 12×–20× | 10–20%/mo early | < 3–4%/mo |
| AI SaaS | 14× | 10×–18× | 10–20%/mo early | < 3–4%/mo |
| Vertical AI | 13× | 9×–16× | 10–20%/mo early | < 3–4%/mo |
| Fintech | 11× | 8×–15× | 10–20%/mo early | < 3–4%/mo |
| Insurtech SaaS | 10× | 7×–14× | 10–20%/mo early | < 3–4%/mo |
| Cybersecurity | 10× | 7×–14× | 10–20%/mo early | < 3–4%/mo |
| API & Integration | 9.5× | 7×–13× | 8–15%/mo | < 5%/mo |
| Healthtech SaaS | 9× | 6×–12× | 8–15%/mo | < 5%/mo |
| Developer Tools | 9× | 6×–12× | 8–15%/mo | < 5%/mo |
| Data & Analytics | 8.5× | 6×–12× | 8–15%/mo | < 5%/mo |
Frequently asked questions
What is customer lifetime value (LTV)?+
LTV is the total revenue you expect from an average customer before they churn.
How do I calculate customer value?+
Customer value combines LTV (ARPU × lifetime) with how customers roll up into total company valuation via ARR multiples.
How does churn affect valuation?+
Higher churn shortens customer lifetime and lowers ARR multiples, reducing both per-customer value and total enterprise value.
How do I calculate LTV for SaaS?+
A simple formula is LTV = ARPU ÷ monthly churn rate, or ARPU × average lifetime in months.
What is valuation per customer?+
Divide total estimated company valuation by your customer count to see how much each customer contributes to enterprise value.
How many customers do I need for a $10M valuation?+
Depends on ARPU, churn, and industry multiple. Use the goal simulator after calculating with your real numbers.
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