Customer Lifetime Value Calculator
Know exactly what each customer is worth to your business — and how reducing churn dramatically increases that number.
Customer Lifetime Value (LTV or CLV) is one of the most important SaaS metrics. This calculator uses your ARPU, gross margin, and churn rate to compute the average total revenue a customer generates over their lifetime. Optionally enter your CAC to see your LTV:CAC ratio — the key indicator of sustainable growth.
Your Numbers
Average monthly revenue per customer across all plans.
Your gross margin percentage. Most SaaS companies are 70-85%.
Percentage of customers who churn each month.
Average cost to acquire a new customer. Leave at 0 to skip LTV:CAC.
Results
Customer Lifetime Value (LTV)
$1,300
Average Customer Lifespan
25.0 months
Monthly Gross Profit per Customer
$52
LTV:CAC Ratio
4.3:1
Formula
LTV = (ARPU x Gross Margin) / Monthly Churn Rate
LTV is calculated by dividing the monthly gross profit per customer (ARPU times gross margin) by the monthly churn rate. This assumes steady-state churn and no expansion revenue. Average customer lifespan is 1 / monthly churn rate (in months). The LTV:CAC ratio divides LTV by your acquisition cost — a ratio above 3:1 is generally considered healthy for SaaS.
How to Interpret Your Results
LTV:CAC under 1:1
You are spending more to acquire customers than they generate. Reduce CAC or increase retention urgently.
LTV:CAC 1:1 to 3:1
Unit economics are marginal. Focus on reducing churn to increase LTV — this is often easier than reducing CAC.
LTV:CAC 3:1 to 5:1
Good unit economics. You can profitably invest in growth while maintaining sustainable margins.
LTV:CAC over 5:1
Strong economics. Consider if you are under-spending on acquisition — you can likely afford to grow faster.
Industry Benchmarks
| Segment | Benchmark | Context |
|---|---|---|
| SMB SaaS | $500-$2,000 LTV | Lower ARPU and higher churn cap LTV. Volume compensates. |
| Mid-Market SaaS | $5,000-$25,000 LTV | Sweet spot of decent ARPU and moderate churn yields strong unit economics. |
| Enterprise SaaS | $50,000-$500,000+ LTV | High ARPU and low churn create enormous lifetime values. |
| Consumer Subscriptions | $100-$500 LTV | Low ARPU and high churn mean you must acquire cheaply to be profitable. |
How Rezoki Can Improve These Numbers
Rezoki is an AI-powered revenue recovery platform purpose-built for SaaS. It combines smart payment retries (timed for maximum approval rates), personalized dunning email sequences, and AI voice calls to recover failed payments before they become permanent churn.
- ✓Average 70% recovery rate across all customers
- ✓5-minute integration with Stripe — no engineering needed
- ✓Uses your own SMTP for zero-cost email delivery
- ✓AI voice calls for high-value invoices that need a personal touch
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