Free online LTV (Customer Lifetime Value) calculator. Calculate customer lifetime value from ARPU, churn rate, and gross margin. Plan SaaS growth and optimize CAC. Pure client-side.
Customer Lifetime Value (LTV or CLV) is the total revenue a business expects to earn from a single customer over the entire duration of their relationship. It's one of the most important SaaS metrics, helping you determine how much you can afford to spend on acquiring customers (CAC) while remaining profitable.
The basic formula is: LTV = (ARPU × Gross Margin) / Churn Rate. For example, if your ARPU is $100/month, gross margin is 80%, and churn is 5%/month, your LTV = ($100 × 0.80) / 0.05 = $1,600.
A healthy LTV/CAC ratio is 3:1 or higher. This means your customer lifetime value is at least 3 times your customer acquisition cost. Below 1:1 is unsustainable, and 1-3:1 is break-even to moderate growth.
LTV (Lifetime Value) and CLV (Customer Lifetime Value) are the same metric — just different abbreviations. Some use LTV for SaaS and CLV for e-commerce, but they measure the same thing.
Improve LTV by: increasing ARPU (upsells, premium plans), reducing churn (better onboarding, support), improving gross margin (efficiency), or extending customer lifetime (loyalty programs).