SaaS LTV Calculator

For subscriptions, lifespan is derived from churn: expected lifetime = 1 ÷ churn. Combined with ARPU and gross margin, that yields the margin-adjusted LTV that should guide acquisition budgets.

Inputs

ARPU / month

Gross margin

Monthly churn rate

Results

Margin-adjusted LTV

$2,314.00

Expected customer lifespan: 33.3 months
Revenue LTV (unadjusted): $2,966.67

Formula

LTV = ARPU × Gross Margin ÷ Monthly Churn

FAQ

Why divide by churn?

A constant monthly churn c implies an expected lifetime of 1/c months — the standard assumption behind SaaS LTV.

Should I discount this LTV?

For long lifespans and real capital decisions, discounting is more rigorous. Operationally, undiscounted LTV remains the convention.