Ballistic MediaFounders & operators
Get a fast read on unit economics or channel efficiency without waiting on a spreadsheet rebuild.
LTV Calculator
Lifetime value from ARPU, margin, and churn.
$3,200
33.3 mo
What is LTV?
Customer Lifetime Value (LTV or CLV) estimates the gross profit a customer generates over their relationship with your product. For subscriptions, a common model multiplies ARPU by gross margin and expected lifetime (from churn).
Why is LTV Important?
Acquisition ceiling
LTV sets how much you can responsibly spend on CAC.
Pricing & packaging
Shows whether plan mix and expansion are creating durable value.
Retention focus
Small churn improvements often lift LTV more than top-of-funnel spend.
Segment strategy
Reveals which ICPs and channels produce high-value customers.
Investor narrative
LTV quality signals whether growth compounds or leaks.
How is LTV Calculated?
LTV = ARPU × Gross margin × (1 ÷ Monthly churn)
Using monthly ARPU, gross margin, and monthly churn, lifetime in months is 1 ÷ churn rate. LTV is ARPU × margin × lifetime. This is a simple steady-state model — cohort methods are more precise for mature products.
Factors Affecting LTV
Churn
Lower churn stretches lifetime and multiplies LTV.
ARPU
Pricing, seats, and add-ons raise revenue per account.
Gross margin
Delivery and COGS determine how much revenue becomes contribution.
Expansion
Upsell/cross-sell can raise effective ARPU over time.
Contract terms
Annual prepay and multi-year deals change cash LTV timing.
Product fit
Weak activation shortens realized lifetime even if pricing looks strong.
LTV vs. ARPU: Understanding the Differences
LTV
- Total expected value over the full customer relationship.
- Depends on retention, margin, and expansion.
- Used against CAC for unit-economics decisions.
ARPU
- Average revenue per user (or account) in a period.
- A building block of LTV, not a substitute for it.
- Useful for pricing and packaging experiments.
What is a LTV Calculator?
An LTV calculator estimates lifetime value from ARPU, margin, and churn so growth and finance teams can set CAC targets without a full cohort model.
Benefits of Using a LTV Calculator
Fast scenarios
Test how churn or pricing changes move LTV.
CAC guardrails
Translate LTV into a maximum acquisition spend.
Prioritization
Compare retention vs acquisition investments.
Segment clarity
Run the model per plan or ICP.
Fewer spreadsheet errors
Standardize the simple LTV formula across the team.
How to Use a LTV Calculator
Enter ARPU
Use monthly average revenue per user or account.
Enter gross margin
Use contribution margin after variable costs.
Enter churn
Use monthly logo or revenue churn as a percentage.
Review LTV
Read lifetime value and implied customer lifetime.
What Is a Good LTV?
Good LTV is relative to CAC and payback. A common SaaS heuristic is LTV at least 3× CAC on a gross-margin basis. Rising LTV from retention and expansion is usually healthier than LTV driven only by price increases that increase churn.
Who's it for?
Digital Marketers
Use this calculator to benchmark performance, allocate budget, and brief stakeholders with a clear, shared metric.
Agencies & growth teams
Standardize reporting across clients and campaigns, and turn calculations into optimization recommendations.
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