SaaS Lifetime Value (LTV) Calculator

Your details

Average Revenue Per Account per month (MRR divided by total active accounts).
Revenue remaining after the direct cost of delivering your product (hosting, support, payment fees). Typical SaaS range is 60-85 %.
%
Percentage of customers who cancel each month. 2 % monthly = 21.5 % annual churn.
%
Average monthly revenue growth from upsells, upgrades, and add-ons from existing customers. Leave 0 if you have no expansion revenue.
%
Total sales and marketing spend divided by the number of new customers acquired in the same period.
Currency
Customer Lifetime Value (LTV)Excellent
$5,625

Expected gross profit from a single customer over their entire relationship

Customer Lifetime50months
Annual Churn Rate0.2%
Monthly Gross Profit / Customer$112.50
LTV:CAC Ratio6.25
CAC Payback Period8months
6.25 x
Unprofitable<1Below target1-3Healthy3-5Excellent5+
Lifetime Value$5,625
Monthly Gross Profit$112.50

LTV of 5,625 shows healthy unit economics.

  • At 2 % monthly churn, an average customer stays for 50.0 months (4.2 years).
  • Annual churn of 21.5 % is moderate. The SaaS median sits around 10-15 % annually for SMB-focused products.
  • An LTV:CAC of 6.3x meets the widely cited 3x benchmark, suggesting acquisition spend is generating healthy returns.

Next stepA payback period of 8.0 months is within a healthy range. Reinvest freed-up capital into product-led growth to lower CAC further.

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