Calculateur de Valeur Vie Client — Formule

How to Calculate Customer Lifetime Value

Formula

LTV = ARPU x Gross Margin / Monthly Churn Rate

Where:

  • ARPU = Average Revenue Per User (monthly)
  • Gross Margin = percentage of revenue that is gross profit
  • Churn Rate = percentage of customers lost per month

    • Average customer lifespan in months = 1 / Monthly Churn Rate. LTV multiplies lifetime revenue by gross margin to get the profit contribution.

    Exemple Résolu

    A subscription business with $50/month ARPU, 70% gross margin, and 3% monthly churn.

    1. Average lifespan = 1 / 0.03 = 33.3 months
    2. Lifetime revenue = $50 x 33.3 = $1,666.67
    3. LTV = $50 x 0.70 / 0.03 = $1,166.67