Finance

Instant, private, and free

SaaS LTV Calculator.

Estimate SaaS customer lifetime value from retention, margin, and revenue assumptions.

On-device calculationNo signup

Set your values

Results update as you type.

02 / ANSWER

Monthly revenue per customer

Gross margin

Monthly churn

Estimated LTV

$0.00

Expected lifetime (months)

0.00

FAQs

How does the saas ltv calculator work?

Enter the requested values to receive a deterministic result. No live market, tax, or jurisdiction data is inferred.

Use Cases

Evaluate Customer Profitability

Determine how much profit a typical customer brings over their lifetime, helping you assess the health of your SaaS business and compare customer segments.

Example: If ARPU is $50, gross margin is 80%, and monthly churn is 5%, LTV is $800.

Guide Marketing Spend Decisions

Use LTV to set a maximum customer acquisition cost (CAC). A common rule is to keep CAC below one-third of LTV to ensure sustainable growth.

Example: With an LTV of $800, you might aim for a CAC under $267.

Frequently Asked Questions

What is SaaS LTV and why is it important?: SaaS LTV (Lifetime Value) estimates the total revenue a customer generates over their entire relationship with your business. It's crucial for understanding profitability, guiding acquisition spending, and making informed decisions about retention and growth.
How is LTV calculated in this calculator?: This calculator uses the formula: LTV = (ARPU × Gross Margin) / Monthly Churn Rate. ARPU is average revenue per user per month, gross margin is the percentage of revenue retained after direct costs, and monthly churn is the percentage of customers lost each month.
What inputs do I need to use this calculator?: You need three inputs: ARPU (average revenue per user per month), gross margin (as a percentage), and monthly churn rate (as a percentage). All are essential for an accurate LTV estimate.

Tips & Common Mistakes

Tips

Ensure your ARPU reflects actual average revenue per user, including all recurring charges and excluding one-time fees.
Use a realistic gross margin that accounts for direct costs like hosting, support, and payment processing fees.
Monthly churn should be based on historical data; if you're new, use industry benchmarks as a starting point.
Re-evaluate your LTV regularly as your pricing, costs, and churn rates change over time.

Common Mistakes to Avoid

Using annual churn instead of monthly churn – this calculator expects a monthly rate, so convert if needed.
Forgetting to convert gross margin from a percentage to a decimal (e.g., 80% as 0.8) when doing manual calculations.
Ignoring the impact of expansion revenue or upsells, which can increase LTV beyond the basic formula.

Last updated: August 13, 2026

Use Cases

Evaluate Customer Profitability

Determine how much profit a typical customer brings over their lifetime, helping you assess the health of your SaaS business and compare customer segments.

Example: If ARPU is $50, gross margin is 80%, and monthly churn is 5%, LTV is $800.

Guide Marketing Spend Decisions

Use LTV to set a maximum customer acquisition cost (CAC). A common rule is to keep CAC below one-third of LTV to ensure sustainable growth.

Example: With an LTV of $800, you might aim for a CAC under $267.

Frequently Asked Questions

What is SaaS LTV and why is it important?

SaaS LTV (Lifetime Value) estimates the total revenue a customer generates over their entire relationship with your business. It's crucial for understanding profitability, guiding acquisition spending, and making informed decisions about retention and growth.

How is LTV calculated in this calculator?

This calculator uses the formula: LTV = (ARPU × Gross Margin) / Monthly Churn Rate. ARPU is average revenue per user per month, gross margin is the percentage of revenue retained after direct costs, and monthly churn is the percentage of customers lost each month.

What inputs do I need to use this calculator?

You need three inputs: ARPU (average revenue per user per month), gross margin (as a percentage), and monthly churn rate (as a percentage). All are essential for an accurate LTV estimate.

Tips & Common Mistakes

Tips

Ensure your ARPU reflects actual average revenue per user, including all recurring charges and excluding one-time fees.
Use a realistic gross margin that accounts for direct costs like hosting, support, and payment processing fees.
Monthly churn should be based on historical data; if you're new, use industry benchmarks as a starting point.
Re-evaluate your LTV regularly as your pricing, costs, and churn rates change over time.

Common Mistakes to Avoid

Using annual churn instead of monthly churn – this calculator expects a monthly rate, so convert if needed.
Forgetting to convert gross margin from a percentage to a decimal (e.g., 80% as 0.8) when doing manual calculations.
Ignoring the impact of expansion revenue or upsells, which can increase LTV beyond the basic formula.

Finance

Instant, private, and free

SaaS LTV Calculator.

Estimate SaaS customer lifetime value from retention, margin, and revenue assumptions.

On-device calculationNo signup

Set your values

Results update as you type.

02 / ANSWER

Monthly revenue per customer

Gross margin

Monthly churn

Estimated LTV

$0.00

Expected lifetime (months)

0.00

FAQs

How does the saas ltv calculator work?

Enter the requested values to receive a deterministic result. No live market, tax, or jurisdiction data is inferred.

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Use Cases

Evaluate Customer Profitability

Determine how much profit a typical customer brings over their lifetime, helping you assess the health of your SaaS business and compare customer segments.

Example: If ARPU is $50, gross margin is 80%, and monthly churn is 5%, LTV is $800.

Guide Marketing Spend Decisions

Use LTV to set a maximum customer acquisition cost (CAC). A common rule is to keep CAC below one-third of LTV to ensure sustainable growth.

Example: With an LTV of $800, you might aim for a CAC under $267.

Frequently Asked Questions

What is SaaS LTV and why is it important?: SaaS LTV (Lifetime Value) estimates the total revenue a customer generates over their entire relationship with your business. It's crucial for understanding profitability, guiding acquisition spending, and making informed decisions about retention and growth.
How is LTV calculated in this calculator?: This calculator uses the formula: LTV = (ARPU × Gross Margin) / Monthly Churn Rate. ARPU is average revenue per user per month, gross margin is the percentage of revenue retained after direct costs, and monthly churn is the percentage of customers lost each month.
What inputs do I need to use this calculator?: You need three inputs: ARPU (average revenue per user per month), gross margin (as a percentage), and monthly churn rate (as a percentage). All are essential for an accurate LTV estimate.

Tips & Common Mistakes

Tips

Ensure your ARPU reflects actual average revenue per user, including all recurring charges and excluding one-time fees.
Use a realistic gross margin that accounts for direct costs like hosting, support, and payment processing fees.
Monthly churn should be based on historical data; if you're new, use industry benchmarks as a starting point.
Re-evaluate your LTV regularly as your pricing, costs, and churn rates change over time.

Common Mistakes to Avoid

Using annual churn instead of monthly churn – this calculator expects a monthly rate, so convert if needed.
Forgetting to convert gross margin from a percentage to a decimal (e.g., 80% as 0.8) when doing manual calculations.
Ignoring the impact of expansion revenue or upsells, which can increase LTV beyond the basic formula.

Last updated: August 13, 2026