SaaS LTV Calculator
Compute customer Lifetime Value (LTV) for SaaS and subscription businesses. Find the average lifetime financial value of a customer for your subscription services.
Formula & Math Logic
LTV = (ARPU * Gross Margin %) / Churn Rate. Lifetime (Months) = 1 / Churn Rate.
Worked Calculation Example
$50 ARPU, 3.5% Churn, 80% Margin
LTV is $1,142.86. Average customer lifespan is 28.57 months.
Frequently Asked Questions (FAQ)
Why include Gross Margin in LTV?
LTV should represent net margin, not top-line revenue, to avoid overestimating customer acquisition budgets.
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