Calculator
LTV Calculator
Customer lifetime value from ARPU and churn
LTV estimates the total revenue an average customer generates before churning. Enter ARPU and monthly churn to get the simple lifetime value.
Inputs
Lost customers / starting customers, e.g. 5 for 5%.
LTV
$580.00
Average lifetime
20.0 months
LTV Calculator FAQ
How is LTV calculated?
The simple formula divides ARPU by the monthly churn rate, which equals ARPU multiplied by the average customer lifetime in months.
Should LTV include gross margin?
Purists multiply by gross margin to reflect what you actually keep. Use margin-adjusted LTV when comparing against CAC paid from revenue.