GuideWhale Customer Lifetime Value (LTV) Calculator
Calculate how much revenue a customer generates over their lifetime
Enter your business metrics
Average monthly revenue per customer
Percentage of revenue that's profit (after COGS)
Percentage of customers that cancel each month
Customer lifetime metrics
Customer Lifetime Value (LTV)
$750
Average Customer Lifetime
20.0 months
Total Revenue per Customer
$1,000
Total Profit per Customer
$750
Formula:
LTV = (ARPU × Gross Margin%) / Churn Rate%
Understanding your customer value
Calculation:
$50 ARPU × 75% margin = $38 monthly profit
$38 monthly profit ÷ 5% churn = $750 LTV
About Customer Lifetime Value
Customer Lifetime Value (LTV or CLTV) represents the total profit you can expect from a customer over their entire relationship with your business.
Why it matters: LTV helps you determine how much you can afford to spend on customer acquisition (CAC) while maintaining profitability. A healthy SaaS business typically aims for an LTV:CAC ratio of 3:1 or higher.
Improving LTV: Increase ARPU (upsells, pricing), reduce churn (better retention), or improve margins (operational efficiency).