How it works
How Customer LTV calculator solves the problem
Use this Customer LTV calculator when you need a ltv calculator you can trust — clean inputs, transparent steps, zero fluff.
The people who ship Customer LTV calculator are the same ones who had to look up a ltv calculator on deadline and hated the result. This is the version they wanted to find.
Boards want one number on the slide; this gets you there before the meeting. Have MRR or headcount numbers in a single place — then model the numbers and the rest of this page explains what the answer means.
Estimate customer lifetime value from ARPU, gross margin and monthly churn — and benchmark against CAC.
On this page you will see Gross margin, LTV and ARPU treated as first-class terms — each one is linked to the calculators and references that use it, so you can follow the thread without retyping queries into a search bar.
If it helps, jump straight to the Business hub or compare with the Customer Acquisition Cost (CAC) calculator and the Churn Rate calculator — those two calcs are the ones readers usually open right after this page.
Seeing it on real numbers
A working example keeps the formula honest:
Estimate customer lifetime value from ARPU, gross margin and monthly churn — and benchmark against CAC.
Moments this tool earns its keep
Customer LTV calculator is aimed at people arriving with questions like these:
- "LTV formula"
- "LTV to CAC"
- "Customer lifetime value"
- "What is ltv calculator"
- "How to calculate ltv calculator"
- "Ltv calculator formula"
Where the number stops being useful
Every tool has an edge where it stops being the right answer. Customer LTV calculator is no exception:
- For legally binding tax or medical decisions — cross-check with HMRC, NHS or a qualified professional.
- For very large or very small extremes the rounding error outgrows the useful precision.
- When the underlying rate or threshold has changed since the page was last reviewed — always verify with the primary source.
- When the input you have is already a derived figure (net of something) — feeding it in as "gross" will double-subtract.
What goes wrong nine times out of ten
Every time you model the numbers for a new scenario, one of these creeps in — it's worth knowing them ahead of time.
- Assuming the UK and US versions of the same unit are interchangeable — they're not.
- Typing a comma where the tool expects a dot (or vice versa).
- Rounding early — particularly painful in percentages and compound growth.
- Ignoring the time window: a 'per year' answer makes no sense with a monthly input.
- Treating the answer as private: screenshots are fine, but the URL always reruns cleanly.
The sources behind the numbers
Where the maths needs an external authority, we cross-check against:
- Harvard Business Review
- ProfitWell
Works well alongside
If this question keeps coming up for you, the same cluster of tools usually comes next:
- Customer Acquisition Cost (CAC) calculator — Work out blended and paid CAC from marketing spend and new customers, with CAC-to-LTV ratio interpretation.
- Churn Rate calculator — Work out monthly and annualised customer churn and revenue churn, plus the implied average customer lifetime.
- SaaS MRR calculator — Work out Monthly Recurring Revenue — new, expansion, contraction and churned — plus net new MRR and MRR growth rate.
- CAC Payback calculator — Work out how many months of gross margin it takes to recoup a customer’s CAC — a quick capital-efficiency gauge.
How we keep this accurate
Our calculadoras run on pure, unit-tested functions — the same logic lives in the browser and in the CI test suite. When tax rates, thresholds or official figures move, the update lands within 24 hours of the announcement. You can read the editorial policy and corrections policy.
Found an out-of-date number on Customer LTV calculator or anywhere else in the Business toolkit? Send it to the editorial desk and we'll patch it. Or browse the full calculadora directory for the next tool you need.