Calculator

Customer Lifetime Value (LTV)

Calculate total customer value and check whether your business model is healthy.

Subscription parameters

Monthly revenue per customer (MRR)

$/mo

Monthly churn rate

good B2B SaaS: 1–3% · B2C: 5–8%

Gross margin

70%

Customer acquisition cost (CAC)

marketing + sales ÷ new customers

Formula (SaaS)

LTV = MRR × Gross margin ÷ Churn rate

Customer Lifetime Value (LTV)

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Avg. relationship length

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Total revenue per customer

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LTV : CAC ratio

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CAC payback period

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Cumulative customer value over time

Cumulative profit

CAC

LTV:CAC < 1

You lose money on every customer. Urgent revision of pricing model or acquisition costs needed.

LTV:CAC = 3–5

Golden zone. Healthy business. You can invest in growth.

LTV:CAC > 5

Possible underinvestment in acquisition. Consider scaling marketing spend.

Agent PriceProAsk about LTV & retention

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Hi! Enter your subscription or e-commerce parameters above and ask me about strategies to increase LTV or optimise CAC.