Your numbers
$
%
Revenue minus hosting, support, and payment-processing costs%
Lifetime value
Customer LTV
$800.00
Avg. lifetime
20.0 mo
Profit / mo / user
$40.00
How it's calculated
LTV = (ARPU × gross margin) ÷ monthly churn
Worked example
$50/mo ARPU, 80% gross margin, 5% monthly churn: LTV = ($50 × 0.80) ÷ 0.05 = $800. Average customer sticks around 1 ÷ 0.05 = 20 months.
Typical benchmarks by segment
FAQ
Common questions about customer LTV
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