Free tool
Calculate customer lifetime value from ARPU, gross margin, and churn. Add CAC to see payback period and the LTV : CAC ratio investors look for.
LTV
$980
Monthly contribution
$39.20
Average lifespan
25.0 mo
LTV : CAC
8.17 : 1
Formula
LTV = ARPU × gross margin × lifespan (lifespan = 1 ÷ churn = 1 ÷ 0.040 = 25.0 months)
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Workflow
Three quick steps from input to a result you can use in your stack.
Step 1
Enter ARPU, gross margin, and monthly churn (or optional lifespan override).
Step 2
Optionally add CAC for payback and the LTV : CAC ribbon.
Step 3
Copy the summary or share outputs with finance or growth.
Why teams use it
Overview
LTV Calculator is a practical online utility for day-to-day business and content workflows. It is designed to reduce friction in common tasks so you can move from input to result quickly. Instead of installing heavy desktop tools, you can run the process in-browser and export output immediately.
Teams often need fast one-off tools without onboarding overhead. LTV Calculator helps with exactly that: quick execution, straightforward controls, and downloadable output. It works well for freelancers, small teams, and operators who need reliable utility actions inside modern workflow stacks.
For the best results, use clear input data, verify final output before publishing, and keep copies of generated assets in your project folders. If you use the output in client-facing documents, review labels and formatting for consistency with your brand and compliance requirements.
Answers
LTV ≈ monthly ARPU × gross margin × average customer lifespan. Lifespan defaults to 1 ÷ monthly churn unless you enter months manually.
SaaS often targets about 3:1 — roughly three dollars of lifetime margin for each acquisition dollar. Under 1:1 loses money per customer; well above 5:1 might mean room to reinvest.
Lifespan reacts sharply to churn. Moving from ~5% to ~3% monthly churn lengthens lifespan and lifts LTV at the same ARPU and margin.
Yes. Leave lifespan blank to derive it from churn, or type observed months when you trust retention cohorts.
No — the sheet runs purely in-browser; figures are neither stored nor uploaded.
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