LTV Calculator

Measure the total value of each customer.

There are multiple LTV calculation methods and companies may calculate their LTV slightly differently. This method uses ARPU and the churn rate over a certain period of time.

Your calculation result will show up here.

Your customer LTV is:

What does this lifetime value (LTV) calculator estimate?

This calculator estimates revenue-based customer lifetime value from average revenue per user and a constant customer churn rate.

How to use this tool

LTV = ARPU ÷ churn rate. Enter churn as a decimal: 0.05 means 5%. Match the periods, such as monthly ARPU with monthly customer churn, and use churn greater than zero.

Example

Monthly ARPU of $50 and monthly churn of 0.05 gives estimated revenue LTV of $1,000.

Understanding your result

This simplified model assumes stable revenue and churn. It does not deduct service costs, apply gross margin, discount future revenue, or model expansion. Revenue LTV is not the same as lifetime profit.

Related tools: ARPU Calculator · LTV:CAC Calculator.

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