Customer Lifetime Value (LTV) Calculator
Estimate customer lifetime value from revenue, churn, and margin so you can judge how much a customer is actually worth before setting CAC targets.
Your Metrics
Enter the core inputs that drive customer value over time.
Average recurring revenue generated by one customer each month
The share of customers who churn in a typical month
Revenue left after direct delivery costs
Your Results
Enter your metrics to see results
Enter your metrics on the left to calculate your customer lifetime value
How to use this LTV calculator
Use this tool when you need a cleaner view of customer value before making acquisition, pricing, or retention decisions. LTV is not just a finance metric. It tells you how much room the business has to spend, recover, and grow.
What drives LTV most
- Revenue per customer: higher ARPU or expansion increases value directly.
- Gross margin: margin matters because top-line revenue is not the same as usable contribution.
- Churn: churn is usually the biggest sensitivity because it changes lifetime, not just monthly revenue.
How to use the output
Once you know LTV, compare it against CAC, payback expectations, and churn. A big LTV number can still hide a weak business if acquisition is too expensive or customers leave too quickly.
Common mistake
Teams often treat LTV as a bragging metric. It is more useful as a constraint. If the number is lower than expected, that usually points to churn, weak expansion, margin pressure, or all three.
LTV alone is not enough
The next question is whether churn and acquisition costs make that LTV actually usable. Pressure-test the full picture with the churn and CAC/LTV tools, or start with an assessment if the economics problem is already expensive.