What this calculator does
SaaS customer lifetime value (LTV) works out what an average subscriber is worth over their time, weighed against acquisition cost. Enter your own figures above and the answer updates as you type: nothing is fixed in the code, so the result reflects exactly the numbers you supply.
The formula this calculator evaluates is printed under the tool and explained below, so you can check the working by hand or reuse it in a spreadsheet.
The formula
The inputs explained
| Field | What to enter |
|---|---|
| Average revenue per account, per month ($) | A number, measured in your currency. Starts at 80. |
| Gross margin (%) | A number, measured in %. Starts at 75. |
| Monthly churn rate (%) | A number, measured in %. Starts at 3. |
| Customer acquisition cost (optional) ($) | A number, measured in your currency. Starts at 600. |
Worked examples
Every figure in the tables below is produced by this page’s own calculator at build time, so the numbers and the tool always agree. Select any row to load that scenario.
How the answer changes with average revenue per account, per month
Every other input is held at the calculator’s starting values while average revenue per account, per month varies. Select any row to load that scenario into the calculator.