Customer Lifetime Value Calculator

A common formula is LTV = ARPU ÷ Churn Rate (when churn is expressed as a decimal or percentage per period). Equivalently, LTV = ARPU × Average Customer Lifespan, where lifespan = 1 ÷ churn. This calculator uses LTV = ARPU × (100 ÷ monthly churn %), so you only need ARPU and monthly churn to get LTV.

Use your average revenue per user per month (ARPU) and your monthly churn rate. LTV = ARPU ÷ (churn rate as a decimal), or plug both into this calculator. If you track retention instead of churn, convert retention to an implied churn (e.g. 100% minus retention over the period) or use cohort revenue data to estimate LTV.

At minimum you need ARPU (revenue per user per period) and churn rate (percentage of users who leave per period). With that you can use this calculator. For more accuracy, use cohort-based revenue and retention so ARPU and churn reflect real behavior. Subscription apps often use MRR and subscription churn; ad-supported apps use ad revenue per user.

Same formula: LTV = ARPU ÷ churn. For subscription apps, ARPU is typically subscription revenue per user per month and churn is subscription cancellation rate. For free apps, ARPU might be ad revenue or in-app purchase revenue per user per month. This calculator works for both; just use the revenue and churn that match your model.

It varies by category and business model. There is no single "good" number—what matters is that LTV is high enough to justify your CAC and that it is improving over time. Compare yourself to benchmarks in your vertical and use this calculator to see how changes in ARPU or churn affect LTV.

Higher retention means lower churn and a longer average customer lifespan, so LTV goes up. Improving retention is one of the most direct ways to increase LTV. Use this calculator: lower your churn rate (equivalent to better retention) and see how much LTV increases. Gamification and habit-building often improve retention and therefore LTV.

Use early signals: ARPU from your first cohorts and an assumed or industry churn rate to get a rough LTV. As you get more data, replace assumptions with your actual churn. You can also use retention curves (e.g. Day 30 retention) to infer an approximate churn rate and plug it into this calculator.

ARPU is average revenue per user per period (e.g. per month). LTV is total expected revenue from a customer over their entire relationship with your app. LTV = ARPU × average lifespan, so LTV captures both how much users pay per period and how long they stay. ARPU is a component of LTV; churn (or lifespan) is the other.

A ratio of 3:1 or higher is often cited as healthy—you earn three times the cost to acquire a customer over their lifetime. Below 1:1 you lose money per customer. The exact target depends on your margins and growth goals. Use this calculator to know your LTV, then compare it to your CAC to see your ratio.

LTV = ARPU ÷ churn, so when you improve retention (lower churn), LTV increases. For example, cutting monthly churn from 10% to 5% doubles average customer lifespan and thus doubles LTV. Use this calculator: enter your current churn, then try a lower churn to see the LTV gain. Investing in retention (e.g. via gamification) often pays off in higher LTV.