LTV Calculator
Customer Lifetime Value & LTV:CAC ratio.
Estimate Customer Lifetime Value (LTV) from average revenue per account, gross margin and monthly churn rate, and compare it to your acquisition cost (CAC) for the LTV:CAC ratio. The benchmark for efficient SaaS growth. Runs fully in your browser — nothing is uploaded.
How to use LTV Calculator
Enter ARPA
Type your average revenue per account per month into the free online LTV calculator to set the monthly revenue baseline for the lifetime value calculation.
Add gross margin
Enter your gross margin percentage so the customer lifetime value reflects real profit, not just revenue, or leave it at 100 to ignore margin entirely.
Set churn rate
Input your monthly churn rate and the LTV calculator instantly estimates average customer lifespan in months using lifespan equals one divided by churn.
Include CAC
Optionally add your customer acquisition cost to instantly reveal the LTV:CAC ratio, the key SaaS metric for judging how efficiently you acquire customers.
Read the verdict
See your customer lifetime value, lifespan and LTV:CAC ratio with a health badge that flags whether your acquisition clears the classic 3:1 benchmark.
Reset or share
Hit reset to model a new scenario or share the result link instantly, knowing every LTV calculation runs privately in your browser and is never uploaded.
Frequently asked questions
What is LTV in SaaS?
Customer Lifetime Value is the total gross profit an average customer generates over their entire relationship with you, before they churn. It tells you how much you can afford to spend acquiring one.
Why include gross margin?
Because revenue isn’t profit. Applying your gross margin turns the lifetime revenue into lifetime profit, which is the figure you should compare against acquisition cost. Set margin to 100% to use revenue instead.
What is the LTV:CAC ratio?
Lifetime value divided by customer acquisition cost. Around 3:1 is considered healthy — you earn three times what it costs to win a customer. Below 1:1 means you lose money on each one.
How do I calculate customer lifetime value (LTV)?
Use the formula LTV = ARPA × gross margin% ÷ monthly churn rate%. This LTV calculator does it for you — just enter average revenue per account, your gross margin and monthly churn, and it returns the lifetime value plus the average customer lifespan.
What is a good LTV:CAC ratio for SaaS?
An LTV:CAC ratio of around 3:1 is the classic SaaS benchmark for efficient, sustainable growth. Below 1:1 means you lose money on each customer, while a very high ratio can signal you’re underspending on acquisition. Add your CAC here to see the ratio instantly.
What's the difference between LTV and CLV?
They're the same metric — Customer Lifetime Value, abbreviated either LTV or CLV — estimating the total profit an average customer generates before churning. Different teams just use different abbreviations; this calculator computes the same figure either way.
How can I increase customer lifetime value?
Raise ARPA (upsells, cross-sells, pricing), improve gross margin (more efficient delivery), and lower churn (better retention) — since LTV = ARPA × margin ÷ churn, each lever moves the result. Cutting churn usually has the biggest impact because it sits in the denominator.
Is my data sent anywhere?
No. Everything is calculated in your browser with JavaScript — nothing you enter is uploaded.
Related tools — SaaS Metrics
- MRR Calculator — Monthly Recurring Revenue from customers × ARPA.
- ARR Calculator — Annual Recurring Revenue from customers × contract value.
- Churn Rate Calculator — Customer churn & retention rate over a period.
- Burn Rate Calculator — Net burn & how many months of runway you have left.