SaaS Lifetime Value Calculator

Calculate Customer Lifetime Value (LTV) to measure long-term customer profitability and optimize SaaS growth strategies

âœ“ Customer Profitability âœ“ Retention Analysis âœ“ Growth Optimization

SaaS LTV Calculator

Revenue Metrics

Average Revenue Per User (ARPU) ($)

Billing Frequency

Gross Margin (%)

Monthly Churn Rate (%)

Customer Acquisition (Optional)

Customer Acquisition Cost (CAC) ($)

Discount Rate (%)

Business Type

Company Stage

LTV Formula

Customer Lifetime Value:

LTV = (ARPU Ã— Gross Margin) ÷ Churn Rate

LTV:CAC Ratio > 3:1 = Healthy

Quick Examples

B2B SaaS

$100 ARPU, 3% churn

B2C SaaS

$20 ARPU, 8% churn

Enterprise SaaS

$500 ARPU, 1% churn

LTV:CAC Benchmarks

Healthy: 3:1 - 5:1

Good: 5:1 - 8:1

Excellent: 8:1+

Payback Period: < 12 months

Understanding SaaS LTV

Customer Lifetime Value (LTV) represents the total revenue a customer generates throughout their relationship with your SaaS business.

Revenue prediction: Forecast long-term customer value
Acquisition strategy: Determine optimal CAC spending
Retention focus: Identify high-value customer segments
Pricing optimization: Align pricing with customer value

Applications

Customer Acquisition

Optimize marketing spend and CAC based on LTV projections.

Pricing Strategy

Set subscription prices that maximize long-term customer value.

Retention Programs

Invest in retention initiatives based on customer value segments.