LTV Calculator
Calculate the lifetime value of your customers.
Unit economics
live
$
LTV results
Lifetime Value
Avg lifespan
mo
Lifetime revenue
Industry monthly churn benchmark
0%2.5%5%10%+
How to use this calculator
- Enter ARPU — average revenue per user, per month.
- Enter gross margin as a percent. Most SaaS lands between 70% and 85%.
- Enter monthly churn rate. Use logo churn if you track customers, revenue churn if you track dollars.
- The calculator returns LTV, average customer lifespan in months, and total predicted lifetime revenue.
Calculation method
Lifespan (mo) = 1 / (Churn / 100)
LTV = ARPU x (Margin / 100) x Lifespan
Lifetime Revenue = ARPU x Lifespan
For expansion-heavy SaaS, replace gross churn with net dollar churn or use NRR-based LTV models for a more accurate picture.
Frequently Asked Questions
LTV is the total gross-margin-adjusted revenue you can reasonably expect from a single customer over the duration of their relationship with your product. It is the primary input for setting a viable CAC ceiling.
Revenue is not profit. A $100 ARPU customer with 30% margin only contributes $30 toward CAC. Excluding margin overstates LTV and can lead to over-spending on acquisition.
The simple formula LTV = ARPU x Margin / Churn assumes constant churn and ARPU. It works well for steady-state SaaS but underestimates LTV when expansion revenue (upsells) is significant. For expansion-heavy models, use Net Revenue Retention (NRR).
Use the same time unit as ARPU. If ARPU is monthly, use monthly churn; if ARPU is annual, use annual churn. Mixing units (annual ARPU with monthly churn) inflates LTV by ~12x.
LTV is meaningful only relative to CAC. Most healthy B2B SaaS businesses target an LTV:CAC ratio of at least 3:1. Raw LTV varies hugely by ACV: $5K SMB tools vs $500K Enterprise contracts cannot be compared directly.
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Business & SaaS Disclaimer
Calculations are estimates for educational purposes. LTV assumes constant churn and ARPU and excludes expansion revenue. SaaSCalcHub is not business or financial advice. Consult business advisors, CPAs, and consultants for your specific situation.
Last updated: May 26, 2026