SaaS LTV Calculator
Find out how much a customer is worth and your ideal ad spend.
Average Revenue Per User
Percentage of users cancelling/mo
Usually ~80-95% for SaaS
Customer Lifetime Value (LTV)
This is the total profit you expect from a single customer.
Max Ad Spend (CAC)
Retention Insights
Average Customer Lifespan
0 Months
At a 0% churn rate, you lose half your cohort in about 0 months.
LTV Calculator — Know What a Customer Is Worth
Customer Lifetime Value tells you how much revenue the average customer brings before churning — the number behind pricing, acquisition budgets and growth models. Enter monthly ARPU, monthly churn rate and gross margin, and this free calculator returns your LTV instantly.
You also get the implied customer lifespan and can compare LTV against your acquisition cost. All math runs in your browser — no signup, no data stored.
ARPU, churn and margin in
Three inputs are all it takes: average revenue per user, the monthly churn percentage, and your gross margin. The calculator does the rest.
LTV to CAC context
Compare your LTV against customer acquisition cost — a ratio of 3 to 1 or better is the classic benchmark for sustainable SaaS growth.
The formula
LTV equals ARPU times gross margin divided by churn rate. A $50 ARPU at 5% monthly churn and 90% margin gives a $900 LTV — and shows why cutting churn beats raising prices.
How to use
- Enter your monthly ARPU.
- Enter your monthly churn rate.
- Set your gross margin percentage.
- Click Calculate LTV to see the result.
Frequently Asked Questions
How is LTV calculated?
LTV = (ARPU x gross margin) / churn rate. For example, $50 ARPU with 90% margin and 5% monthly churn gives ($50 x 0.9) / 0.05 = $900.
What is a good LTV to CAC ratio?
The common benchmark is 3 to 1 — lifetime value at least three times acquisition cost. Below that, growth may be unprofitable; far above it may mean you are under-investing in growth.
What is ARPU?
Average Revenue Per User per month — total monthly revenue divided by active customers. Use MRR per customer if you are a subscription business.
Does this work for ecommerce?
Yes, with adjustments. For one-off purchases, estimate purchase frequency and average order value to derive a monthly-equivalent ARPU before calculating.
Is my business data stored?
No. All calculations run locally in your browser and nothing you enter leaves your device.
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