Free SaaS Lifetime Value Calculator Tool
Calculate your SaaS Lifetime Value (LTV) instantly with our free calculator. Enter ARPA, gross margin & churn rate to find your ideal CAC ratio.
Calculate the lifetime value of your customers and determine how much your business can afford to spend on acquisition.
SaaS Lifetime Value Analysis
Customer Lifetime Value (LTV) represents the total amount of gross profit a customer will generate for your company over their entire relationship.
Frequently Asked Questions
Free SaaS LTV calculator built for founders & FIRE investors. See how much a customer is worth — and how much you can safely spend to acquire one.
A: Multiply your ARPA by gross margin. Divide the result by your churn rate. That's the total gross profit one customer generates over their full lifespan.
A: Aim for a 3:1 ratio. Your Customer LTV should sit at roughly three times your acquisition cost. A higher ratio means stronger unit economics and more room to scale.
A: Churn drives everything. Lower churn stretches your average customer lifespan and pushes LTV up. Even a 1% drop in monthly churn can add real months to a customer's tenure.
A: Divide 100 by your monthly churn rate. A 5% churn rate gives you a 20-month average lifespan — the exact math this calculator runs for you.
A: Gross margin is revenue minus the direct cost of serving a customer, shown as a percentage. Hosting, support, and payment processing fees usually belong here.
A: Yes. Just match your churn rate to the same time frame. Annual ARPA needs an annual churn rate — mixing time periods will break your LTV output.
A: Follow the Max Targeted CAC guideline: LTV divided by three. With a $1,600 LTV, cap acquisition spend near $533 per customer.
A: LTV shows your real profit engine per customer. That number lets you forecast cash flow, price with confidence, and build toward FIRE on solid math — not guesswork.