SaaS metrics

SaaS Lifetime Value Calculator

Calculate the lifetime value of a SaaS customer based on ARPU, gross margin and churn rate.

Enter your values

Results update as you type. Nothing is sent anywhere — the maths runs in your browser.

$

Monthly revenue per customer.

%

Revenue minus COGS, as a percentage.

%

Percentage of customers who cancel each month.

Formula

LTV = (ARPU × Gross Margin %) ÷ Monthly Churn Rate

LTV estimates total gross profit from a customer over their lifetime. Lower churn has an outsized impact.

Customer Lifetime Value
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Enter values to calculate.

Monthly gross profit
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Avg lifespan (months)
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Total revenue / customer
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Lifespan (years)
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Frequently asked questions

What is SaaS LTV?

The total gross profit you expect from a customer before they churn. It guides how much you can spend on acquisition.

What is a good LTV:CAC ratio?

3:1 or higher is healthy. Below 1:1 means you lose money on every customer.

How does churn affect LTV?

Halving churn doubles LTV. Small churn improvements have outsized impact.

Should I use monthly or annual churn?

This calculator uses monthly. Divide annual churn by 12 for an approximation.