Customer Lifetime Value (LTV) Calculator
Estimate how much revenue and gross profit an average customer brings over their entire relationship with your business. Use it to set acquisition budgets and pricing.
Calculate your LTV
LTV equals average monthly revenue per customer divided by your monthly churn rate. A lower churn rate means a longer customer lifetime and a higher LTV.
How the LTV calculation works
Three inputs turn your monthly revenue into a full lifetime value.
Enter average monthly revenue
Add the average monthly revenue a single customer pays you, often called ARPU. This is your starting point for every customer.
Add your monthly churn rate
Enter the percentage of customers who cancel each month. We divide revenue by churn to find LTV and use 1 divided by churn for customer lifetime in months.
Apply your gross margin
We multiply LTV by your gross margin to show lifetime gross profit, which is the value left after the direct cost of serving each customer.
Frequently Asked Questions
Common questions about customer lifetime value.
Turn higher LTV into steady cash flow
Invoice My Clients makes it easy to bill recurring customers, track payments, and keep revenue flowing so every customer reaches their full lifetime value.