Free online Customer Lifetime Value (CLV/LTV) calculator to quantify total profit per customer. Uses ARPU, churn rate and gross margin. | No Signup · Data Never Leaves Your Device
Zero Dependencies · Works OfflineFree online Customer Lifetime Value (CLV/LTV) calculator to quantify total profit per customer. Uses ARPU, churn rate and gross margin.
SaaS Pricing Decisions：Back-calculate your acceptable CAC budget from CLV, setting upper limits for paid ads and content marketing to ensure every customer acquisition channel is profitable.
Customer Segmentation：Calculate CLV by customer segment to identify high-value customers (20% generating 80% of profit) and focus customer success and retention resources accordingly.
Investor Data：Present unit economics to investors with CLV and CAC data proving your business model's sustainability and profitability.
CLV is the total profit a customer contributes over the entire business relationship. Simple formula: CLV = ARPU × Gross Margin / Churn Rate. Example: ARPU $100/mo, 80% margin, 5% monthly churn → CLV = $100 × 80% / 5% = $1,600.
SaaS industry standard is LTV:CAC ≥ 3:1 for a healthy business. Below 3 suggests CAC is too high or retention too poor. Above 5 may mean under-investing in growth. The sweet spot is 3-5x.
For SaaS, monthly churn below 2-3% is considered healthy (24-36% annually). Top companies stay under 1%. B2B SaaS typically has lower churn than B2C. Consumer subscription products at 5-8% monthly churn are still normal.
CLV is total profit per customer; CAC (Customer Acquisition Cost) is cost to acquire one. CLV is a revenue-side metric; CAC is cost-side. Together they measure business sustainability: CLV must exceed CAC, typically targeting LTV:CAC ≥ 3.
① Reduce churn (better product/customer success); ② Boost ARPU (price increases/upsells/cross-sells); ③ Improve margins (optimize cost structure). Reducing churn has the biggest impact since it sits in the denominator.