LTV Calculator
Customer lifetime value, done right.
Compute LTV from ARPU, gross margin and churn. Compare to CAC to see if the unit economics actually work.
10,987 calculations4.8 ratingUpdated June 2026
Customer Lifetime Value Calculator — June 2026
Calculate Customer LTV, LTV:CAC ratio, payback period and retention with June 2026 benchmarks.
Your LTV workbench
Tune ARPU, churn, margin and CAC — the retention curve and ratio update instantly.
Cohort retention curve
36-month cumulative LTV
Live LTV
Revenue inputs
Retention inputs
Cost inputs
At $100 ARPU and 5% monthly churn, each customer returns $1.6K in gross profit over ~1.7 years. Your 8.0:1 LTV:CAC ratio is sustainable for June 2026 benchmarks — you can scale acquisition confidently.
Segment comparison
See how Enterprise, Mid-Market, SMB and Self-Serve cohorts stack up on LTV.
Customer Segment Analysis
Compare LTV across customer segments to optimize acquisition and retention strategies
$960,000
$120,000
$13,714
$2,784
LTV by Segment
Revenue Distribution
Lifetime Value Distribution
Total Portfolio Value
$88,539,429
Total Customers
3,050
Monthly Revenue
$338,000
Avg LTV
$29,029
🎯 Segment Insights
- • Enterprise has the highest LTV at $960,000 per customer
- • Enterprise contributes 54% of total portfolio value
- • Enterprise LTV is 345x higher than Self-Serve
- • Focus acquisition on high-LTV segments for better unit economics
Deep analysis
Inspect the cohort decay table, AI advisor and scenario stress test.
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LTV Report
Formula, June 2026 benchmarks, expert tips, mistakes and real LTV case studies — one read.
The LTV formula stack
LTV = ARPU × Gross Margin × (1 / Churn Rate)Step-by-Step Breakdown
Customer lifespan
Lifespan = 1 ÷ Monthly Churn5% monthly churn = 20 months expected lifespan.
Monthly gross profit
ARPU × Gross Margin$100 × 80% = $80 of gross profit per customer per month.
CAC payback
CAC ÷ Monthly Gross ProfitMonths to recover acquisition cost — target <12 months.
Example Calculation
Customer LTV benchmarks (June 2026)
Median LTV by industry — refreshed for the 2026 funding climate.
| Industry | Low | Average | High | Key drivers |
|---|---|---|---|---|
SaaS SMB | $1.8K | $8K | $24K | |
SaaS Enterprise | $50K | $180K | $500K | |
Fintech | $600 | $2.4K | $9K | |
E-commerce DTC | $120 | $340 | $900 | |
AI Vertical Tools | $1.2K | $4.8K | $18K |
* Benchmarks reflect first 6–12 months to launch in USD. Figures vary by region, team size, and market conditions. Click any source to verify the underlying data.
Expert tips for maximizing LTV in 2026
Attack churn first, always
Churn compounds. A 2pt churn cut beats a 20% price increase in most models.
💡 Action: Instrument churn reasons, run weekly exit interviews, fix the top 3 each month.
Land annual contracts early
Annual prepay slashes payback and locks lifespan above the median.
💡 Action: Offer 15–20% annual discounts the moment a customer hits month 3 of healthy usage.
Push NDR past 110%
Net Dollar Retention above 100% means cohorts grow even before new logos.
💡 Action: Add usage-based upsell tiers and quarterly business reviews for top quartile.
Defend gross margin
Every margin point flows straight into LTV. Automate before scaling support headcount.
💡 Action: Target 75%+ gross margin before opening paid acquisition above $1k CAC.
Triangulate LTV with cohort data
Headline LTV hides cohort dispersion. Premium investors look at 12-month cohort gross profit.
💡 Action: Always present LTV alongside a 12-month cohort table in any pitch.
Common LTV mistakes to avoid
Using revenue instead of gross profit
Revenue-based LTV overstates value by 20–60% depending on COGS.
✓ Instead: Always multiply by gross margin — that is the cash you actually keep.
Confusing annual and monthly churn
5% annual ≠ 5% monthly. The latter is ~10× more severe.
✓ Instead: Pick one unit consistently — monthly is standard for subscription SaaS.
Ignoring cohort dispersion
Average LTV hides bimodal customer behavior. Half churn at 30 days, half stay forever.
✓ Instead: Report median + p25/p75 LTV alongside the mean.
Counting unblended CAC
Organic + paid CAC mixed together masks paid economics.
✓ Instead: Always split paid CAC from blended CAC when reporting LTV:CAC.
Real-world LTV examples
See how other companies improved LTV:CAC in the June 2026 market.
Subscription SaaS
Challenge: High CAC threatening profitability despite strong product-market fit.
LTV
$2,400
↑ 60%
CAC
$400
↑ -35%
LTV:CAC
6:1
↑ from 2.5:1
Payback
5 mo
↑ -7 mo
Outcome: Shifted to content marketing and reduced churn through better onboarding, dramatically improving unit economics.
* Case studies are based on industry averages and anonymized data from similar companies.
CAC Calculator
Customer acquisition cost & payback.
Guide: What is LTV?
Founder-grade guide with frameworks & examples.
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Strong LTV starts with the right customer. Validate the segment before scaling spend.
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