SaaS Lifetime Value Calculator
Results are estimates based on the values you enter. Recheck your inputs and assumptions before using the output for decisions.
Estimate SaaS customer lifetime value from average revenue per user, gross margin, and monthly churn assumptions.
SaaS Lifetime Value Calculator
Free online SaaS lifetime value calculator to estimate how much gross profit a subscription customer is expected to generate over the course of the relationship. This calculator is useful for SaaS founders, growth teams, finance managers, subscription analysts, investors, agencies, and operators who want a quick way to understand customer value. Lifetime value is one of the most important subscription metrics because it helps connect pricing, margins, churn, acquisition spending, and long-term growth efficiency.
This page uses a practical SaaS version of LTV built from monthly ARPU, gross margin, and monthly churn. Monthly ARPU means average revenue per user or customer in a month. Gross margin adjusts that revenue to reflect the profit left after direct service-delivery costs such as hosting, support, or infrastructure. Monthly churn shows how quickly customers leave. When churn is lower, average customer lifetime gets longer, which usually increases lifetime value. When churn rises, lifetime value tends to fall. This calculator shows those relationships clearly by turning the inputs into monthly gross profit per customer, expected customer lifetime in months, annualized gross profit, and SaaS lifetime value.
The formula of SaaS lifetime value
Monthly gross profit per customer = Monthly ARPU x Gross margin
Customer lifetime in months = 1 / Monthly churn rate
SaaS lifetime value = Monthly gross profit per customer x Customer lifetime in months
Annualized gross profit per customer = Monthly gross profit per customer x 12
Here monthly ARPU means average monthly revenue from one customer, gross margin means the percentage of revenue retained after direct costs, monthly churn rate means the percentage of customers lost each month written as a decimal in the formula, customer lifetime in months is the estimated average relationship length, and SaaS lifetime value means the total gross profit expected from one customer over that average lifetime.
Solved Example
Example 1: Find the SaaS lifetime value if monthly ARPU is $120, gross margin is 80%, and monthly churn is 5%.
Solve: Monthly gross profit per customer = 120 x 0.80 = $96
Customer lifetime in months = 1 / 0.05 = 20 months
SaaS lifetime value = 96 x 20 = $1,920
Annualized gross profit per customer = 96 x 12 = $1,152
Example 2: Find the result if monthly ARPU is $250, gross margin is 75%, and monthly churn is 4%.
Solve: Monthly gross profit per customer = 250 x 0.75 = $187.50
Customer lifetime in months = 1 / 0.04 = 25 months
SaaS lifetime value = 187.50 x 25 = $4,687.50
Annualized gross profit per customer = 187.50 x 12 = $2,250
Example 3: Find the result if monthly ARPU is $60, gross margin is 85%, and monthly churn is 10%.
Solve: Monthly gross profit per customer = 60 x 0.85 = $51
Customer lifetime in months = 1 / 0.10 = 10 months
SaaS lifetime value = 51 x 10 = $510
Annualized gross profit per customer = 51 x 12 = $612
Table of SaaS lifetime value calculator
| Monthly ARPU | Gross Margin | Monthly Churn | Customer Lifetime | SaaS LTV |
|---|---|---|---|---|
| $60 | 85% | 10% | 10 months | $510 |
| $120 | 80% | 5% | 20 months | $1,920 |
| $250 | 75% | 4% | 25 months | $4,687.50 |
| $400 | 82% | 3% | 33.33 months | $10,933.33 |
How to use this SaaS lifetime value calculator
Enter the monthly ARPU in the proper input field. After that, enter the gross margin percentage and the monthly churn percentage for the same customer base. Then click the calculate button. The calculator will show SaaS lifetime value, customer lifetime in months, monthly gross profit per customer, and annualized gross profit per customer in the result box.
This calculator is useful when comparing pricing plans, retention improvements, acquisition strategies, and unit economics. If churn falls while ARPU and gross margin stay steady, lifetime value rises because customers remain active longer. If gross margin improves, more revenue flows through to gross profit and LTV goes up as well. That makes this calculator helpful for evaluating the business impact of pricing, retention, onboarding, and cost structure changes.
When using the result, remember that SaaS LTV depends heavily on the churn assumption and on how revenue and margins behave over time. Real businesses may have expansion revenue, contraction, annual billing, different cohorts, and segment-specific economics that are not captured in this simple model. Even so, this version of SaaS lifetime value remains one of the clearest quick unit-economics checks. This calculator gives a fast numerical view that supports CAC comparison, subscription planning, investor analysis, and growth decision-making.