#899 · Startup Tool

SaaS LTV Calculator

Calculate SaaS customer lifetime value using ARPU, gross margin, churn, and support cost. This LTV calculator estimates customer lifetime, gross profit value, recommended CAC range, and retention-driven risk.

Calculator

Revenue, margin, churn, and cost inputs
$ /mo
%
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$ /mo
Ad space

How to use this calculator

Enter average revenue per user, gross margin, monthly churn rate, and monthly support cost per customer.

The calculator estimates lifetime in months and the value of a customer after margin and support costs.

What the result means

LTV estimates the economic value of a customer over their expected lifetime. Higher margin and lower churn increase LTV, while support cost and churn reduce it.

Customer lifetime = 1 ÷ Monthly churn rate. Gross LTV = ARPU × Gross margin × Lifetime. Net LTV = (ARPU × Gross margin − Support cost) × Lifetime.

Very low churn can produce very high LTV estimates, so validate results with cohort data.

Example calculation

With $80 ARPU, 82% gross margin, 3% monthly churn, and $8 support cost, lifetime is 33.3 months and net LTV is about $1,920.

Tips for better results

  • Use revenue-weighted ARPU for multi-plan SaaS.
  • Improve onboarding and activation to reduce churn.
  • Compare LTV with CAC before increasing acquisition spend.

FAQ

How do I calculate SaaS customer lifetime value?

Estimate customer lifetime from churn, then multiply monthly gross profit per customer by that lifetime.

What is a good LTV for a SaaS business?

A good LTV depends on CAC and payback. LTV should usually be several times higher than acquisition cost.

How does monthly churn affect SaaS LTV?

Higher monthly churn shortens customer lifetime, which lowers LTV even if ARPU stays the same.

Should support costs be included in SaaS LTV?

Including support cost gives a more conservative net LTV because it reflects the cost required to retain and serve customers.

What CAC can I afford based on SaaS LTV?

Many SaaS teams use LTV:CAC targets around 3:1 or better to decide whether acquisition cost is sustainable.

LTV metrics

MetricUse
Customer lifetimeEstimated months before churn.
Gross LTVLifetime value before support cost.
Net LTVLifetime value after margin and support cost.
Recommended CACAcquisition cost range based on LTV quality.

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