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LTV Calculator (Lifetime Value)

Calculate your SaaS customer lifetime value

LTV (Lifetime Value) represents the total revenue a customer generates throughout their entire relationship with your company. It's a fundamental metric to evaluate customer profitability and optimize your marketing investments.

Your Data

$/month
%
%

Formula used:

LTV = ARPU × Gross Margin / Churn Rate

Result

SaaS Benchmarks

< $500Low
$500 - $2,000Average
$2,000 - $5,000Good
> $5,000Excellent

Optimization Tips

  • Reducing churn by 1% can increase LTV by 30-40%
  • Offer upsells to increase ARPU without acquisition costs
  • A solid onboarding improves long-term retention
  • Segment customers by LTV to prioritize support

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How to Use This Calculator

LTV is calculated by multiplying the average revenue per user (ARPU) by the gross margin, divided by the monthly churn rate.

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