Customer Lifetime Value (LTV) Calculator
Calculate your customer LTV to understand long-term revenue potential and make better acquisition decisions.
Your Metrics
Enter your current SaaS metrics to calculate LTV
Your average MRR per customer
Percentage of customers who cancel each month
Revenue minus direct costs (typically 70-90% for SaaS)
Your Results
Enter your metrics to see results
Enter your metrics on the left to calculate your customer lifetime value
Why LTV Matters for SaaS Companies
Customer Lifetime Value (LTV) is one of the most important metrics for SaaS businesses. It tells you how much revenue you can expect from a customer over their entire relationship with your company.
How to Use Your LTV
- Set CAC Targets: Your Customer Acquisition Cost should be no more than 1/3 of your LTV (3:1 ratio)
- Prioritize Retention: A 5% increase in retention can increase LTV by 25-95%
- Evaluate Channels: Compare marketing channels based on LTV, not just CAC
- Guide Pricing: Higher LTV justifies premium pricing and more aggressive growth
Industry Benchmarks
- B2B SaaS (SMB): $1,500 - $15,000 LTV
- B2B SaaS (Mid-Market): $15,000 - $150,000 LTV
- B2B SaaS (Enterprise): $150,000+ LTV