Customer Lifetime Value (LTV) Calculator

Calculate the total value of your customer relationships. Optimize your acquisition strategy and improve customer retention.

LTV Calculator

Calculate Customer Lifetime Value for your SaaS business

Average Revenue per User ($)

Average Customer Lifespan (Months)

Gross Margin (%)

Results

Customer Lifetime Value (LTV)

$2400.00

Monthly Revenue per Customer

$100.00

Total Customer Value

$1200.00

Insights

Each customer generates $100.00 in monthly revenue and stays with you for 24 months on average, resulting in a lifetime value of $2400.00.

What is Customer Lifetime Value?

Customer Lifetime Value (LTV) represents the total revenue a business can expect from a single customer account throughout the business relationship. This metric is crucial for evaluating customer profitability and optimizing marketing investments.

How is LTV calculated?

LTV = Average Monthly Revenue × Customer Lifespan × Gross Margin

Why is LTV important?

Understanding your LTV helps you make better business decisions:

Acquisition Strategy

Optimize your customer acquisition costs (CAC)

Customer Segmentation

Identify your most valuable customer segments

Retention Focus

Improve customer retention strategies

Growth Planning

Make informed decisions about business expansion