SaaS LTV Calculator

Monthly revenue per customer on average

Revenue minus COGS (hosting, support, etc.)

Percentage of customers that leave each month

Hosting, support, and other per-customer costs

About This Tool

The SaaS LTV Calculator estimates the Customer Lifetime Value for your SaaS business using ARPU (Average Revenue Per User), monthly churn rate, and gross margin. It shows both gross profit LTV and net LTV, plus a health rating based on your LTV:CAC ratio.

How to Use

  1. Enter your ARPU — average monthly revenue per customer.
  2. Enter your Gross Margin percentage (typically 70-80% for SaaS).
  3. Enter your Monthly Churn Rate — the percentage of customers who cancel each month.
  4. Optionally enter Cost of Servicing per customer, then click Calculate LTV.

Why Choose OmniTools?

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Frequently Asked Questions

What is a good LTV?

A good LTV is typically at least 3x your Customer Acquisition Cost (CAC). An LTV:CAC ratio of 3:1 or higher means your SaaS business is healthy and growing sustainably.

What does churn rate mean?

Churn rate is the percentage of customers who cancel each month. A 5% monthly churn means 5 out of every 100 customers leave per month, giving an average customer lifetime of 20 months.

What is gross margin in SaaS?

Gross margin is revenue minus the cost of goods sold (COGS). In SaaS, COGS typically includes hosting, infrastructure, and support costs. Most SaaS businesses target 70-80% gross margins.

How do I reduce churn?

Focus on onboarding, customer success, and product improvements. Even reducing churn from 5% to 3% monthly can double your LTV. Regular check-ins and feature education significantly improve retention.

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