Unit Economics • 100% Free
Customer Lifetime Value (LTV) Calculator
Model gross lifetime profit per user, customer retention horizons, and benchmark return on acquisition spend.
Customer Economics
Revenue minus hosting, payment gateway, support & COGS.
Percentage of customers who cancel or churn per period.
Customer Lifetime Value (LTV)
₹46,875
Cumulative gross profit per acquired account
Avg. Customer Lifespan
25Periods
Lifespan = 1 ÷ Churn Rate (4%)
LTV : CAC RatioIndicative: Healthy (≥3x)
3.13x
Every rupee spent acquiring a customer returns 3.13 rupees in gross margin over the customer's lifespan.
Calculation Assumptions
- Gross margin set at 75%, yielding ₹1875 gross contribution per customer per period.
- Customer lifetime equals 1 / Churn (4.0%), yielding ~25 periods average retention.
- Formula model assumes constant ARPU, constant gross margin, and homogenous cohort churn over time.
Formulas & Methodology
Customer Lifespan
Lifespan = 1 ÷ Churn Rate
Customer Lifetime Value (LTV)
LTV = (ARPU × Gross Margin %) ÷ Churn Rate
LTV to CAC Ratio
Ratio = LTV ÷ CAC
Frequently Asked Questions
Why must LTV be adjusted for gross margin?
Unadjusted LTV overstates customer worth by counting gross revenue. Only the gross margin portion is available to cover operating costs and generate company profit.
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