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Takes about 2 minutesFree, no sign-upLTV : CAC included

Customer Lifetime Value Calculator

How much is a customer really worth to you? Combine what they pay, your margin and how long they stay to get lifetime value, then see your LTV to CAC ratio, the single best test of whether growth is healthy.

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Customer lifetime value
Underinvesting
₹62,500
Each customer is worth 6.9 times what they cost to acquire
Avg lifespan
33 mo
Monthly gross profit
₹1,875
LTV to CAC
6.9:1
Lifetime revenue
₹83,333
LTV to CAC ratio
0135
6.9
Could spend more
Value versus cost
Lifetime value against acquisition cost
6.9:1
LTV : CAC
Lifetime value87%
Acquisition cost
Cumulative value over time
Gross profit a customer returns month by month
Cumulative gross profit
M0M6M12M18M24M30M36
CAC recovered around month 6
How this calculator works

Gross profit divided by churn

Lifetime value takes the gross profit a customer pays each month and divides it by net churn, which sets how long they stay. Then compare it to CAC.

The formulas
Net churn
Monthly churn − Expansion
Gross profit
Revenue per customer × Gross margin
LTV
Gross profit ÷ Net churn
LTV to CAC
LTV ÷ Acquisition cost
Every field explained

What each input actually means

Avg revenue per customer
The average monthly revenue a single customer pays you, often called ARPA or ARPU. Use a blended average across your base.
Gross margin
The percentage of revenue left after the direct cost of serving a customer. LTV is built on gross profit, not raw revenue.
Monthly churn rate
The share of customers who cancel each month. It sets your average customer lifespan, and it is the single biggest driver of LTV.
Your current CAC
What you spend to acquire one customer. Enter it to unlock the LTV to CAC ratio, the key test of healthy growth.
Expansion revenue
The extra revenue existing customers add each month through upgrades and cross-sells. It offsets churn and raises lifetime value.
Benchmarks

What LTV to CAC ratio is healthy?

The ratio is the single clearest test of unit economics. Here is how to read yours.

Ratio of 3 to 5: healthy
The sweet spot for most startups. Customers are worth several times their cost, leaving room for overheads and profit.
Ratio above 5: underinvesting
Great economics, but you may be leaving growth on the table. You can likely afford to acquire more aggressively.
Ratio of 1 to 3: tighten up
Workable but thin. Reduce churn, lift margin or bring CAC down to build a healthier cushion.
Ratio below 1: rethink
You lose money on every customer. Fix retention and unit economics before pouring more into acquisition.
Questions, answered

Customer LTV FAQ

Customer lifetime value, or LTV, is the total gross profit you expect from a customer across their whole relationship with you. It combines how much they pay, your gross margin, and how long they stay.
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