Free Tool

Customer Lifetime Value Calculator

Calculate how much revenue each customer generates over time.
Essential for pricing, marketing spend, and growth decisions.

$

Monthly revenue per customer

%

% of customers who cancel each month

%

Leave empty for revenue-based LTV, or enter margin for profit-based LTV

Know your customer value

Enter your metrics to calculate how much revenue each customer generates over their lifetime with your business.

SaaS LTV formula
LTV = ARPU / Churn Rate

Why LTV matters for your business

Customer Lifetime Value is one of the most important metrics for sustainable growth.

Set marketing budgets

Know exactly how much you can spend to acquire a customer while staying profitable. No more guessing on ad spend.

Forecast revenue

Predict future revenue based on your customer base. Essential for planning, hiring, and investor conversations.

Focus retention efforts

Understand how reducing churn impacts your bottom line. Often, improving retention is more valuable than acquiring new customers.

Understanding LTV:CAC ratio

The ratio between Customer Lifetime Value and Customer Acquisition Cost tells you if your business model is sustainable.

< 1:1

Losing money

You're spending more to acquire customers than they're worth. Urgent action needed on pricing, retention, or acquisition costs.

1:1 - 3:1

Room to improve

You're profitable but margins are tight. Focus on reducing churn, increasing ARPU, or optimizing acquisition channels.

3:1+

Healthy business

Strong unit economics. You have room to invest more in growth. If ratio is above 5:1, you might be underinvesting in acquisition.

How to increase LTV

Reduce churn

The #1 lever for SaaS LTV. Improve onboarding, add engagement features, and proactively reach out to at-risk customers. A 5% churn reduction can double LTV.

Increase ARPU

Upsell to higher tiers, add premium features, or introduce usage-based pricing. Expanding revenue from existing customers is often easier than acquiring new ones.

Add expansion revenue

Create opportunities for customers to buy more over time—additional seats, add-ons, or complementary products. Best SaaS companies have 120%+ net revenue retention.

Target better customers

Not all customers are equal. Identify segments with higher LTV and focus acquisition there. Enterprise customers often have 10x+ the LTV of SMBs.

Start building your customer base

Create a waitlist to capture interested customers before you launch. Build anticipation and validate your idea.

Before choosing Waitlister, I compared several alternatives. Honestly, Waitlister stands far ahead. The product is more intuitive, faster to set up, and clearly built with real attention to detail.
J
John
Verified Purchaser, AppSumo

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