Subscription Business LTV Calculator
Subscription businesses span streaming services, subscription boxes, memberships, and recurring service models. A constant-rate LTV estimate can use the same formula as SaaS, but its assumptions may fit some renewal patterns poorly. Monthly vs annual plan mix, voluntary vs involuntary churn, and seasonal patterns all play important roles in accurately calculating lifetime value.
Subscription LTV assumptions
Example Subscription inputs
$29
6%
55%
Quick estimate: With these illustrative Subscription values, the estimated LTV would be $266 in lifetime gross profit per customer, assuming monthly revenue, margin, and customer churn stay constant. These are example inputs, not industry averages.
Calculate Your Subscription LTV
Use our free LTV calculator with your actual numbers. Estimates LTV from monthly ARPU, customer churn, and gross margin.
Open LTV CalculatorSubscription LTV: Frequently Asked Questions
A simple subscription estimate uses monthly ARPU × gross margin / monthly customer churn. Streaming services, physical boxes, and memberships can have different margins, renewal patterns, and seasonal use. Keep the model inputs consistent and check its assumptions against customer cohorts.
Annual plans change payment timing, renewal opportunities, and often price. Test the effect of a proposed discount on gross profit and retention, comparing annual and monthly subscribers over equivalent periods. A lower cancellation frequency does not by itself establish higher LTV.
Include customers lost through failed payments in observed customer churn. Track that loss separately so you can assess retry logic, card updates, and grace periods. Measure how much revenue those changes recover rather than assuming a fixed recovery rate.
Compare engagement with subsequent retention in your own cohorts. Track relevant actions, such as items used, content consumed, or features activated, and investigate changes. An association between use and retention does not establish that driving more activity will cause users to stay.