SaaS LTV Calculator
Calculate your customer lifetime value in seconds — and see how your churn rate impacts LTV. Enter your ARPU and churn rate to get started.
SaaS LTV — Inputs
Your Results
Improving churn to 4% increases LTV to ~$1,250
Small improvements in churn significantly increase customer value
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What is Customer Lifetime Value (LTV)?
Customer Lifetime Value (LTV or CLV) is the total revenue a business can expect from a single customer over the entire duration of their relationship. For SaaS, it is typically calculated using ARPU and churn rate.
Simple LTV formula: LTV = ARPU ÷ Monthly Churn Rate
For example, if your ARPU is $100 per month and your monthly churn rate is 2%, your LTV is $5,000.
LTV is most useful when compared to Customer Acquisition Cost (CAC). A healthy SaaS business typically targets an LTV:CAC ratio of 3:1 or higher.