Customer lifetime value calculator

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Pressure-test unit economics from ARPU, churn, gross margin, and CAC.

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Estimated LTV

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Enter monthly revenue, gross margin, churn, and CAC to estimate customer lifetime value and payback.

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Example calculations

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Lean SaaS baseline

$120 ARPU, 80% margin, 4% monthly churn

A straightforward subscription model where churn and gross margin are the main drivers of lifetime value.

Result: A sub-4-month payback and an LTV:CAC comfortably above 3:1 usually signals room to scale more confidently.

Higher-ticket service

$450 revenue with lower margin but longer retention

Useful for agencies, coaching products, or B2B tools where revenue is stronger but margins are less software-like.

Result: Higher revenue can absorb a larger CAC, but the margin assumption still matters a lot.

Fast-churn ecommerce repeat buyer

$75 revenue, 55% margin, 9% churn

A retention-sensitive scenario where even modest churn improvements can change the economics materially.

Result: Retention pressure shortens lifetime fast, so LTV:CAC can look healthy or broken with only a few points of churn difference.

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