Customer lifetime value calculator
The standard SaaS formula: average revenue per account times gross margin, divided by monthly churn. Three inputs, one honest number.
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The LTV formula, unpacked
Placeholder section: why LTV = ARPA x margin / churn, what each input means, and the assumptions hiding inside the formula.
LTV to CAC: the ratio that matters
Placeholder section: the 3:1 rule of thumb, payback period, and why LTV alone says nothing about efficiency.
Frequently asked questions
Should LTV use gross margin or revenue?
Gross margin. A customer paying $100/month with 80% margin is worth $80/month of value; revenue-based LTV flatters the number.
What churn rate should I plug in?
Placeholder answer: customer churn vs net revenue churn trade-offs go here after research.
Stop calculating by hand
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