Customer Lifetime
Value Calculator
Calculate LTV using multiple methods, compare against CAC, and understand your unit economics.
LTV Calculator
Choose your calculation method
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Optional: Calculate LTV:CAC ratio
Simple LTV Formula
LTV = (ARPU × Gross Margin) ÷ Churn Rate
Customer Lifetime Value
$1,050
Average revenue per customer over their lifetime
Monthly Value
$53
After margin
Customer Lifespan
20.0 mo
Average duration
LTV:CAC Ratio
ExcellentRatio
7.0:1
CAC Payback
2.9 mo
Target
3:1+
LTV:CAC Benchmarks
Excellent (growth-ready)5:1+
Good (healthy)3:1 - 5:1
Your ratio7.0:1
Understanding Customer Lifetime Value
Why LTV Matters
LTV tells you how much revenue you can expect from a customer. This determines how much you can spend on acquisition, which products to invest in, and whether your business model is sustainable.
How to Increase LTV
Three levers control LTV: reducing churn (extend lifespan), increasing ARPU (upsells, price increases), and improving margins. Chargezen helps with all three through AI-powered retention and checkout optimization.
