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Customer Lifetime Value (LTV) Calculator

Calculate customer lifetime value (LTV) using ARPU, churn rate, and gross margin percentage.

Currency:
LTV : CAC Ratio
10.29 : 1
Customer LTV: $3,600
Above 5:1 — Under-Investing in Growth
High acquisition efficiency! You can afford to spend more aggressively on sales & marketing to capture market share.
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What This Calculator Does

Calculate customer lifetime value (LTV) using ARPU, churn rate, and gross margin percentage.

How to Use This Calculator?

  1. Enter Average Revenue Per User (ARPU).
  2. Enter monthly churn rate (%).
  3. Enter gross margin (%).

Formula & Calculation Logic

LTV = (ARPU * Gross Margin %) / Churn Rate %

Worked Example & Walkthrough

$100 ARPU, 80% Gross Margin, 4% Churn => LTV = ($100 * 0.8) / 0.04 = $2,000.

In-Depth Comprehensive Guide

### LTV Calculation Guide Maximize lifetime value through retention and expansion revenue.

Frequently Asked Questions (FAQ)

The percentage of subscribers who cancel their subscription each month.

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