RetainFlow · Free tools

Customer Lifetime Value (LTV) Calculator

A 1% churn reduction is worth more than any feature sprint.

Average Revenue Per User / ARPU ($/mo)

Monthly Churn Rate (%)

Customer Acquisition Cost / CAC ($)

Optional — used for LTV:CAC ratio

Gross Margin (%)

Default 75% if unsure

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Every 1% of churn you recover compounds into LTV.

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Guide

How to calculate SaaS LTV

Core formula, LTV:CAC, limitations, and how to sanity-check with cohort data as you grow.

The baseline formula

A saas ltv calculator starts from ARPU, gross margin, and monthly churn. LTV approximates gross profit per customer over their life: ARPU × margin ÷ churn rate.

LTV vs. CAC

Pair LTV with CAC to get ltv cac ratio—healthy SaaS often targets 3× or higher on a fully loaded CAC basis. Payback months show how long gross profit takes to return acquisition spend.

What these models assume

Customer lifetime value saas estimates assume flat ARPU and steady churn. Still, the churn sensitivity rows in this tool show why small retention wins can dwarf many roadmap bets.

Next step: cohorts

Use this saas ltv calculator for direction, then refine with cohort curves and expansion revenue as you scale.