CAC Calculator
Sales + marketing spend in a slice ÷ newly acquired customers counted the same window.
Open calculator →LTV Calculator (Simple Gross Margin Adjusted)
Simplified annuity-style gross LTV using ARPA, margin, and churn in shared time units.
Overview
Use as a rough ceiling before layering payback calculators. Expansion ARR and curved cohort churn are consciously absent—flag that when quoting it.
When to use this calculator
- When you pair rough lifetime value with acquisition cost for a quick check
- When churn and ARPU move and you want a refreshed planning number
- When you know this is simplified and still need a planning range
- Before you judge a channel only on first-order revenue
Rule of thumb
This LTV sketch ignores cohort curves and expansion nuance. Use it beside payback and CAC, not instead of them.
Terms used in this calculator
- LTV
- A simple lifetime earnings sketch from average revenue, margin, and churn—not a prophecy.
- CAC
- Acquisition spend you assign divided by how many fresh paying customers you credit in that same window.
- Churn rate (logo churn)
- What share of the starting cohort you lost inside the timeframe you framed.
Calculator
Estimated customer LTV
$5,497.14
Results are simplified estimates for educational purposes only and should not be treated as financial, accounting, legal, or tax advice. See our disclaimer for details.
Formula
Approximation: (average revenue × gross margin) ÷ churn rate decimal. Inputs must align (month ARPU with monthly churn, etc.).
Example calculation
Using the default example values from the JSON seed for this tool:
- Avg revenue per account / mo
- 148
- Gross margin
- 78
- Monthly logo churn
- 2.1
Result: $5,497.14 (Estimated customer LTV)
How to interpret this result
A simplified LTV using ARPA, gross margin, and churn in the same time basis.
Expansion revenue and cohort curvature are not in this shortcut—upgrade to cohort tools for precision.
Pair with CAC and payback for decisions, not LTV alone.
Common mistakes
- Mixing monthly churn with annual contract price without conversion.
- Ignoring gross margin when quoting “revenue LTV.”
- Extrapolating one enterprise cohort to the whole base.
What to do next
Pair churn and ARPU sensitivities next—tiny churn edits move this LTV model fast.
How to improve this result
- Improve gross margin with pricing discipline and supplier terms.
- Ship onboarding that lands the “aha” moment inside the trial window you measure.
- Layer expansion offers only when usage data shows room—avoid forced upsell churn.
Recommended tools
- Baremetrics SaaS metrics and subscription analytics dashboards.
- ChartMogul Subscription analytics for revenue, churn, and cohort reporting.
- ProfitWell Pricing and retention resources for subscription businesses.
FAQ
- What churn basis?
- Use the same period as revenue—for annual revenue totals, pair with annual churn figures or convert churn to a monthly rate first.
- Does this forecast cash timing?
- No—collections and prepayments still live off-model.
- Why wildly high LTV?
- Churn artificially low—or margin overstated—investigate both.
- Should expansion lift LTV?
- This base model ignores deliberate upsell; adjust ARPU externally if expansion is systemic.
- Pair with?
- CAC, payback, and NRR/GRR calculators so one ratio never rides solo.
Related calculators
Churn Rate Calculator
Customers lost ÷ beginning cohort × 100 in the observation window—you define "lost."
Open calculator →SaaS Subscription Cost Calculator
Total license spend from monthly price × seats × months—good for budgeting, not capitalization.
Open calculator →Affiliate disclosure
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