Customer Lifetime Value Calculator
Enter monthly revenue per user, gross margin, and monthly churn. Get LTV.
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Open BusinessOSCommon questions
Why multiply by gross margin?
Because a customer paying you $100 with 80% margin only contributes $80 in real profit. LTV should reflect profit, not revenue.
LTV vs CAC — the healthy ratio?
LTV:CAC of 3:1 is healthy. Below 1:1 = losing money on every customer. Above 5:1 = probably not spending enough on growth.
How do I use LTV to make decisions?
It caps what you can profitably pay to acquire a customer. If LTV is $200, don't spend more than $67 on CAC (assumes 3:1 ratio).