SaaS LTV Calculator
Find out how much a customer is worth and your ideal ad spend.
Average Revenue Per User
Percentage of users cancelling/mo
Usually ~80-95% for SaaS
Customer Lifetime Value (LTV)
This is the total profit you expect from a single customer.
Max Ad Spend (CAC)
Retention Insights
Average Customer Lifespan
0 Months
At a 0% churn rate, you lose half your cohort in about 0 months.
About SaaS LTV Calculator
The SaaS LTV Calculator is designed to give founders and marketers a brutally honest look at their unit economics. Unlike other tools that rely on complex, opaque formulas, we use the standard "Gross Profit" model to ensure you aren't overestimating your customer value.
Privacy Guarantee
Your data (ARPU, Churn, Margin) is processed 100% locally in your browser. We do not store, track, or share your financial metrics.
Industry Benchmarks (Expert Context)
To understand if your LTV is "good," you must compare it against your specific business model benchmarks:
- B2C SaaS (e.g., Spotify): Monthly churn is typically higher (3-5%). LTV relies on volume.
- B2B SMB (e.g., Mailchimp): Monthly churn should range between 1% - 2.5%.
- B2B Enterprise (e.g., Salesforce): Monthly churn must be <1%. Contracts are often annual.
The Golden Rule: LTV:CAC Ratio
Investors and successful bootstrappers aim for a ratio of 3:1 or higher. Meaning, if your LTV is $300, you can afford to spend up to $100 to acquire a customer (CAC). Warning: A ratio below 1:1 means you are losing money on every customer acquired.
Frequently Asked Questions
Why is Gross Margin important for LTV?
Many simple calculators ignore margin and calculate LTV based on Revenue `(ARPU / Churn)`. This is dangerous. If your software has high server costs, AI API fees, or support costs (COGS), your revenue might be high but your profit low.
Example: $100 ARPU with 50% margin means you only keep $50. Your LTV is effectively half of what a revenue-based calculator would show. We include margin to give you the safe number.
How do I lower my Churn Rate?
Churn is the single biggest lever for LTV. Reducing churn from 5% to 2.5% doubles your LTV. Tactics include:
- Switching monthly customers to annual plans.
- Improving onboarding to ensure "Time to Value" is short.
- Fixing bugs (passive churn) and failed payments (dunning).
What is a "Safe" CAC payback period?
Most funded SaaS companies aim to recover their Customer Acquisition Cost (CAC) within 12 months. Bootstrapped founders often aim for 3-6 months to maintain cash flow. Our "Safe (5:1)" metric typically aligns with a faster payback period.
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