Calculator Tool

LTV Calculator workspace

Estimate customer lifetime value from monthly ARPU, gross margin, and average retention duration.

Estimated LTV

22,750.00

Gross-profit based lifetime value estimate.

Formula and method

LTV = ARPU per month × Gross margin % × Average retention months

This calculator estimates customer lifetime value from ARPU, margin, and retention duration to support sustainable growth planning.

Example calculation

These examples show how retention and margin shifts can affect lifetime value more than top-line ARPU alone.

Example 1

A product with 2,500 ARPU, 65% gross margin, and 14-month retention yields strong lifetime value for paid growth analysis.

Example 2

Compare LTV changes when retention improves by 2–3 months to evaluate the impact of onboarding and lifecycle campaigns.

LTV Calculator FAQ

Why use gross-margin based LTV instead of revenue-only LTV?

Gross-margin based LTV gives a more realistic view of economic value by accounting for delivery costs instead of overstating customer contribution.

Is retention duration the same as customer lifespan?

For this model, yes. Retention months represent the average time a customer remains active and generating recurring revenue.

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