SaaS LTV Calculator
SaaS teams use lifetime value to assess acquisition budgets and customer economics. Review the estimate alongside payback and observed retention; it depends on assumptions about future revenue, costs, and churn.
SaaS LTV assumptions
Example SaaS inputs
$99
5%
80%
Quick estimate: With these illustrative SaaS values, the estimated LTV would be $1,584 in lifetime gross profit per customer, assuming monthly revenue, margin, and customer churn stay constant. These are example inputs, not industry averages.
Calculate Your SaaS LTV
Use our free LTV calculator with your actual numbers. Estimates LTV from monthly ARPU, customer churn, and gross margin.
Open LTV CalculatorSaaS LTV: Frequently Asked Questions
A useful LTV target depends on acquisition cost, margin, retention, and cash needs. The 3:1 LTV:CAC guideline is a starting point for discussion, not a guarantee of sustainable growth. Compare customer segments using the same LTV definition.
Use revenue and churn periods consistently. Divide annual contract value by 12 for monthly ARPU. Under a constant monthly churn assumption, equivalent monthly churn = 1 - (1 - annual churn)^(1/12), using decimals. Dividing annual churn by 12 understates that compounded monthly rate. Annual renewals can make a cohort-based estimate more useful than a constant-rate model.
Use the churn measure required by your model. A customer-lifetime model pairs ARPU with customer churn. Revenue churn describes lost recurring revenue and can differ when account sizes vary: for example, 5% customer churn and 2% revenue churn. Do not substitute the rates without changing the model and its interpretation.
Expansion can increase the revenue generated by retained customers. NRR above 100% means the starting customer group generated more recurring revenue at the end of the measured period. Model expansion over an explicit forecast horizon; zero or negative net churn cannot be used as the denominator of a simple finite LTV estimate.