- Choose one reporting period, cohort, currency, and unit system before entering values.
- Enter the required figures for LTV Calculator. Keep revenue and churn on the same time basis and use segment-specific gross margin.
- Review the primary result, then inspect the supporting values rather than relying on the headline number alone.
- Change one assumption at a time to compare a conservative, base, and optimistic case.
- Save the input definitions with the result so the calculation can be reproduced later.
LTV Calculator
The LTV Calculator provides a transparent calculation of ltv from a consistent set of inputs. It helps users check the arithmetic, compare scenarios, and understand which assumptions have the greatest effect on the result.
Calculator inputs
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%
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Result
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Calculated result
Enter your SaaS metrics to calculate the result.
Run the calculator to see a benchmark interpretation.
Implied lifetime—
Gross profit ARPU—
Annual gross profit—
Retention rate—
Simple LTV = Average revenue per customer × Gross margin percentage ÷ Customer churn rate
Use consistent periods and units throughout the calculation. When rates are entered as percentages, convert them to decimals for arithmetic unless the interface performs that conversion automatically.
What the result means
It converts the entered assumptions into a consistent estimate of ltv. The result is most useful for comparison and planning when every input covers the same scope.
The simple formula assumes stable churn and margin; cohort models are better when behavior changes over time. Recalculate when the underlying inputs change, and use source records rather than memory for material decisions.
At $120 monthly revenue, 75% gross margin, and 4% monthly churn, estimated LTV is $2,250.
The example illustrates the mechanics only. Replace every example value with data that reflects the user’s actual period, account, policy, or scenario.
What does the LTV Calculator tell me?
It converts the entered assumptions into a consistent estimate of ltv. The result is most useful for comparison and planning when every input covers the same scope.
Which input definitions matter most for this ltv calculation?
Keep revenue and churn on the same time basis and use segment-specific gross margin. Differences in timing, rounding, attribution, fee schedules, eligibility rules, or data definitions can materially change the answer.
What is the most important limitation of this ltv result?
The simple formula assumes stable churn and margin; cohort models are better when behavior changes over time. Recalculate when the underlying inputs change, and use source records rather than memory for material decisions.
What is the right way to compare two ltv scenarios?
For a reliable comparison, keep the formula basis—Simple LTV = Average revenue per customer × Gross margin percentage ÷ Customer churn rate—constant, change only the assumption being tested, and record both the absolute and percentage difference.