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LTV Calculator (Customer Lifetime Value)
LTV = (ARPU × Gross Margin) ÷ Monthly Churn Rate.
Customer Lifetime Value (LTV)
LTV = (ARPU × Gross Margin) ÷ Monthly Churn Rate
ARPU
$50.00
Gross margin
80.0%
Churn rate
5.0%
Estimated LTV
$800.00
FAQ
What is LTV (Customer Lifetime Value)?
LTV estimates the total gross profit you earn from a customer over their relationship with your product.
How do you calculate LTV?
For subscription products: LTV = (ARPU × Gross Margin) ÷ Monthly Churn Rate.
What units should I use?
Enter ARPU as monthly revenue per user, gross margin in %, and churn as monthly % of customers lost.