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Customer Lifetime Value Calculator

Estimate a simple customer lifetime value (LTV) from monthly revenue per customer, gross margin and monthly churn. Optionally add customer acquisition cost (CAC) to compare payback and LTV:CAC.

Simple illustration, not a business forecast or advice. Assumes revenue, margin and churn remain constant; real cohorts vary. Excludes discounting, expansion, refunds, overhead and taxes. Churn must be above zero. Currency only formats numbers; it does not convert them.

How do you calculate customer lifetime value from churn?

This simple method estimates LTV as monthly revenue per customer × gross margin ÷ monthly customer churn. With monthly revenue 100, 50% margin and 5% monthly churn, LTV is 1,000 before CAC and overhead.

Frequently asked questions

How do you calculate customer lifetime value from churn?

This simple method estimates LTV as monthly revenue per customer × gross margin ÷ monthly customer churn. With monthly revenue 100, 50% margin and 5% monthly churn, LTV is 1,000 before CAC and overhead.

Are my business figures uploaded?

No. The calculation runs locally in this browser. Your revenue, margin, churn and CAC values are not uploaded or saved by this tool.

How does monthly churn estimate customer lifetime?

Under a simple constant-churn assumption, expected lifetime in months is 100 divided by the monthly churn percentage. At 5% churn, that is 20 months. Real retention can change over time.

Does LTV include customer acquisition cost or overhead?

LTV here is based on revenue and gross margin. CAC is shown separately as a ratio and simple payback comparison; overhead, taxes, discounting and changing cohorts are excluded.