Customer LTV Calculator
Calculate Customer Lifetime Value (LTV) — the total profit you can expect from an average customer over their entire relationship with your business.
Inputs
Customer LTV
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Avg customer lifetime
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Monthly margin per customer
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LTV : CAC ratio
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CAC payback period
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About Customer LTV Calculator
LTV:CAC benchmark
Above 3:1 is healthy SaaS. Below 1:1 means you’re losing money on each acquisition. 1:1 to 3:1 is acceptable for early-stage but needs improvement. 5:1+ might mean you’re under-investing in growth.
Margin vs revenue LTV
Revenue LTV uses ARPU directly. Gross-margin LTV (used here) subtracts cost of goods sold — more honest for evaluating unit economics. Always specify which you mean when comparing.
Limits of this formula
Assumes constant ARPU and constant churn. Real LTV is often higher than calculated because customers who stay longer also tend to expand (upsells). For more accurate models, segment by cohort and project explicitly.