LTV Calculator

Calculate Customer Lifetime Value. Estimate total revenue from an average customer.

This tool calculates Customer Lifetime Value (LTV) — the estimated total revenue from an average customer over their relationship with your business. This uses a simplified formula. Results are illustrative estimates based on the inputs you provide.

Calculator

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%
%
Customer LTV (Revenue)
$1,000.00
Customer LTV (Gross Profit)
$800.00
Average Customer Lifetime
20 months
Monthly ARPU
$50.00

Common use cases

  • CAC payback analysis
  • Marketing budget decisions
  • Customer segment prioritization
  • Pricing strategy

How to use

  1. Enter your average revenue per user (monthly)
  2. Enter your monthly churn rate
  3. Optionally enter gross margin for profit-based LTV
  4. View estimated customer lifetime value

FAQ

Is this LTV formula accurate?

This is a simplified formula (ARPU / Churn). More sophisticated models account for expansion, variable churn, and discounting.

Should I use revenue or gross profit LTV?

Gross profit LTV is more accurate for profitability analysis. Revenue LTV is simpler and commonly used for benchmarking.

Results are illustrative estimates based on the inputs you provide.