Calculate the lifetime value of a SaaS customer based on ARPU, gross margin and churn rate.
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.
LTV = (ARPU × Gross Margin %) ÷ Monthly Churn Rate
LTV estimates total gross profit from a customer over their lifetime. Lower churn has an outsized impact.
Enter values to calculate.
The total gross profit you expect from a customer before they churn. It guides how much you can spend on acquisition.
3:1 or higher is healthy. Below 1:1 means you lose money on every customer.
Halving churn doubles LTV. Small churn improvements have outsized impact.
This calculator uses monthly. Divide annual churn by 12 for an approximation.