Hustlay
Free SaaS tool

SaaS LTV Calculator

What's a customer actually worth over their lifetime?

This SaaS LTV calculator works out customer lifetime value from average revenue per customer, gross margin and monthly churn, and shows the average customer lifetime in months.

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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

Key takeaways

  • SaaS LTV = average revenue per customer × gross margin ÷ monthly churn rate.
  • Example: $50 a month, 80% margin and 4% monthly churn gives an LTV of $1,000 and a 25-month average lifetime.
  • A common benchmark is an LTV:CAC ratio of at least 3:1.
  • Cutting churn is usually the fastest lever: 4% → 2% churn doubles LTV.

LTV assumes you know your real margin. Hustlay tracks revenue and costs per product, so the margin you plug in is real.

Track real margins
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
Segment
Typical ARPU
Typical monthly churn
Prosumer / indie
$10–$30
5–8%
SMB
$50–$200
2–5%
Mid-market
$500–$2,000
1–2%
Enterprise
$5,000+
<1%
FAQ

Common questions about customer LTV

There's no universal number — LTV should be judged against CAC, not in isolation. A $200 LTV is great if CAC is $50 (4:1) and bad if CAC is $180 (1.1:1). As a rule of thumb, aim for LTV at least 3x your CAC.

Related free tools:
CAC calculator →Churn rate calculator →MRR & ARR calculator →
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