💻 SaaS Lifetime Value Calculator
Estimate the lifetime value (LTV) of a typical SaaS customer using average revenue per account, gross margin, and churn rate.
1
$
2
%
3
%
What is SaaS Lifetime Value?
Customer Lifetime Value (LTV) estimates the total gross profit a SaaS business expects to earn from an average customer over the entire time they remain subscribed.
The formula
LTV = (Average Revenue Per Account × Gross Margin) / Monthly Churn Rate. This works because 1/churn rate approximates a customer’s expected lifetime in months. LTV is commonly compared to Customer Acquisition Cost (CAC) — an LTV:CAC ratio of 3:1 or higher is often cited as healthy.
This calculator is for general SaaS business planning and education.
Last reviewed August 2026