Free Customer Lifetime Value Calculator
Calculate Customer Lifetime Value (CLV/LTV) to understand the total revenue you can expect from a single customer over their entire relationship with your business.
USD
%
%
Customer Lifetime Value (LTV)
$1,166.67
Avg Customer Lifespan33.3 months
Lifetime Revenue$1,666.67
Customer Lifetime Value (LTV) vs Monthly Churn Rate
How to Calculate Customer Lifetime Value
Formula
LTV = ARPU x Gross Margin / Monthly Churn Rate
Where:
Average customer lifespan in months = 1 / Monthly Churn Rate. LTV multiplies lifetime revenue by gross margin to get the profit contribution.
Example Calculation
A subscription business with $50/month ARPU, 70% gross margin, and 3% monthly churn.
- 01Average lifespan = 1 / 0.03 = 33.3 months
- 02Lifetime revenue = $50 x 33.3 = $1,666.67
- 03LTV = $50 x 0.70 / 0.03 = $1,166.67
Frequently Asked Questions
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