Calculate the total value a customer brings to your business over their entire relationship with your company.
Percentage of customers who cancel each month.
Optional: Include to calculate CLV:CAC ratio and payback period.
Enter your data and click Calculate to see results
The simplest way to calculate CLV is to multiply the average revenue per customer by the average customer lifetime in months or years.
CLV = Average Monthly Revenue Per User × Average Customer Lifetime (months)
OR
CLV = ARPU × (1 ÷ Monthly Churn Rate)If you know your monthly revenue, number of customers, and churn rate, you can calculate CLV directly. This method accounts for customer acquisition and retention dynamics.
ARPU = Monthly Revenue ÷ Number of Customers
Average Lifetime (months) = 1 ÷ Monthly Churn Rate
CLV = ARPU × Average LifetimeThe ratio of Customer Lifetime Value to Customer Acquisition Cost (CLV:CAC) indicates business health. A healthy SaaS business typically has a CLV:CAC ratio of 3:1 or higher.
CLV:CAC Ratio = CLV ÷ CAC
Payback Period (months) = CAC ÷ ARPUCustomer Lifetime Value is one of the most important metrics for subscription businesses. It helps you determine how much to spend on customer acquisition, evaluate marketing channel effectiveness, identify your most valuable customer segments, and make strategic decisions about retention and expansion initiatives.
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