Customer Lifetime Value (LTV)
Calculate how much revenue one customer generates over their entire relationship — the numerator of your most important business ratio.
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How this calculator works
LTV (Lifetime Value) is the total revenue you can expect from a single customer over their entire relationship with your business. Higher LTV gives you the ability to spend more on acquisition and still be profitable. LTV is directly tied to churn — every 1% reduction in monthly churn significantly increases LTV.
LTV (subscription) = (Monthly revenue × Gross margin) ÷ Monthly churn rate | LTV at 12 months = Monthly margin × 12 | LTV at 24 months = Monthly margin × 24
Last updated: March 2026 · Rates and slabs updated for FY 2025-26
Churn kills LTV
At 5% monthly churn, average customer life is 20 months. At 2% churn, it's 50 months. Halving churn more than doubles LTV.
Expand revenue per customer
Upsells and cross-sells increase LTV without increasing CAC. The most capital-efficient growth is from existing customers.
Cohort-based LTV is better
Calculate LTV by acquisition cohort — customers from 2022 may behave very differently from 2024 customers.
Frequently Asked Questions
At 5% monthly churn, average customer life is 20 months. At 2% churn, it's 50 months. Halving churn more than doubles LTV.
Upsells and cross-sells increase LTV without increasing CAC. The most capital-efficient growth is from existing customers.
Calculate LTV by acquisition cohort — customers from 2022 may behave very differently from 2024 customers.