Customer Lifetime Value Calculator

What is Customer Lifetime Value (LTV)?

Customer Lifetime Value (LTV or CLV) is the total revenue a business can expect from a single customer over their entire relationship. It is one of the most important metrics investors evaluate when assessing a startup's unit economics.

LTV Formulas

Simple: LTV = ARPU x Customer Lifespan x Gross Margin

Churn-based: LTV = ARPU / Churn Rate x Gross Margin

Why LTV:CAC Matters for Fundraising

The LTV:CAC ratio tells investors how efficiently you turn acquisition spend into long-term value. A ratio of 3:1 is the gold standard for SaaS and subscription businesses. Below 1:1 means you're losing money on every customer. Above 5:1 might mean you're under-investing in growth.