SaaS LTV Calculator

Calculate customer lifetime value for your SaaS business

Calculate Customer Lifetime Value (LTV) for your SaaS business with our specialized calculator. Understand the long-term value of your customers and make data-driven decisions about customer acquisition.

SaaS LTV calculations consider monthly recurring revenue, customer churn rate, and customer lifespan to provide accurate predictions of customer value over time.

Calculate Customer LTV

$10$1000
$
0.120
%
$50$2000
$
1100
%

Customer Lifetime Value

$1,600

Customer Lifespan

20.0months

LTV:CAC Ratio

3.20x

Monthly Value

100$/mo

Metrics Guide

  • • LTV:CAC ratio above 3 is considered good
  • • Lower churn rate means higher customer value
  • • Higher gross margin improves profitability
  • • Consider upsell potential for true LTV

What to Use For

Customer Value

Calculate the total value of your customer relationships

Growth Planning

Plan acquisition strategies based on customer value

Revenue Forecasting

Project future revenue based on customer lifetime

Churn Analysis

Understand the impact of churn on customer value

What is Customer Lifetime Value?

Customer Lifetime Value (LTV) in SaaS measures the total revenue you can expect from a customer throughout their entire relationship with your business, factoring in recurring revenue and churn rate.

Why Calculate LTV?

Understanding customer lifetime value is crucial because:

  • Guides customer acquisition spending
  • Helps optimize pricing strategies
  • Identifies most valuable customer segments
  • Informs retention strategies

Key LTV Components

Essential metrics that affect LTV:

  • Monthly Recurring Revenue (MRR)
  • Customer Churn Rate
  • Gross Margin
  • Customer Lifespan
LTV Optimization Tips

Improve your customer lifetime value with:

  • Reduce churn through engagement
  • Implement upsell strategies
  • Optimize pricing tiers
  • Focus on customer success
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