Calculators · Free to use
Customer Lifetime Value (LTV) Calculator
LTV tells you how much a customer is worth over their lifetime. Enter monthly revenue per user, gross margin and monthly churn to get LTV — and the LTV:CAC ratio if you add CAC.
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How to use the ltv calculator
- 1Enter average revenue per user per month (ARPU).
- 2Enter gross margin % (revenue minus cost to serve).
- 3Enter monthly churn %. Optionally add CAC for the LTV:CAC ratio.
This tool runs in your browser. The text, files and values you enter are not uploaded to our server.
About the ltv calculator
Customer lifetime value (LTV or CLV) estimates the gross-margin revenue an average customer generates before they churn: LTV = ARPU × gross margin × (1 ÷ monthly churn). Pairing it with CAC gives the LTV:CAC ratio investors and operators use to judge whether growth is healthy. This calculator does both.
Frequently asked questions
Is this tool free?
Yes — completely free, no signup, no watermark and no limits. Startup OG funds the site through its directory and partner program, not paywalled tools.
How is LTV calculated for SaaS?
A common formula is (ARPU × gross margin %) ÷ monthly churn rate. It assumes a roughly steady churn rate and turns "5% monthly churn" into an average 20-month lifetime.
What is a good LTV:CAC ratio?
Around 3:1 is the widely cited healthy target. Below ~1:1 you lose money on every customer; far above 3:1 can mean you are underinvesting in growth.
Should LTV use revenue or gross margin?
Gross margin. Revenue-based LTV overstates value because it ignores the cost to serve the customer.