Project customer value from revenue, churn, and margins. Benchmark CAC payback and retention strength instantly. Plan acquisition budgets with confidence across every growth stage.
The graph compares monthly present value and cumulative present value for the projected cohort.
| Metric | Example Value | Why It Matters |
|---|---|---|
| Average monthly revenue per account | $350.00 | Sets the base recurring revenue for each surviving account. |
| Gross margin | 82.00% | Converts top-line revenue into expected gross profit. |
| Monthly churn | 3.50% | Controls how quickly the cohort shrinks over time. |
| Monthly expansion | 1.20% | Captures upgrades, seats, cross-sells, and price growth. |
| Variable monthly service cost | $28.00 | Reduces the contribution margin delivered by each account. |
| Customer acquisition cost | $900.00 | Lets marketers judge payback speed and capital efficiency. |
| Annual discount rate | 12.00% | Discounts future value into today’s money. |
| Projection months | 36 | Defines the planning horizon used in the cohort model. |
| One-time onboarding revenue | $250.00 | Adds immediate implementation revenue to LTV. |
| One-time onboarding cost | $80.00 | Offsets setup revenue to produce setup margin. |
Setup Margin = One-Time Onboarding Revenue − One-Time Onboarding Cost
Monthly Contribution = (ARPA × Gross Margin) − Variable Monthly Service Cost
Expected Lifetime Months = 1 ÷ Monthly Churn Rate
Simple LTV = Setup Margin + (Current Monthly Contribution × Expected Lifetime Months)
Discounted LTV = Setup Margin + Σ [ Survival(t−1) × ((ARPA × (1 + Expansion)^(t−1) × Gross Margin) − Variable Cost) ÷ (1 + Monthly Discount)^t ]
LTV:CAC = Discounted LTV ÷ CAC
Payback Months = CAC ÷ Current Monthly Contribution
This model uses logo churn for survival and expansion for revenue growth. It values future gross profit with discounting, which is stronger than a flat LTV shortcut.
SaaS lifetime value estimates the gross profit a customer generates across the relationship. It helps marketing teams judge channel efficiency, set acquisition limits, and prioritize retention work that increases profitable growth.
Revenue can overstate customer value. Gross margin removes direct delivery costs, so the resulting LTV is closer to the real contribution available to recover CAC, cover overhead, and fund future growth.
Simple LTV uses a shortcut based on churn and current contribution. Discounted LTV models month-by-month survival, expansion, and discounting, so it usually gives a more realistic valuation for planning.
This calculator uses logo churn for customer survival. If your business expands strongly within accounts, keep expansion in the expansion field rather than replacing logo churn with revenue churn.
Include costs that scale with active customers, such as hosting, usage charges, support workload, customer success programs, and service credits. Avoid fixed overhead that does not change with customer volume.
Many teams target at least 3:1, but the right threshold depends on payback speed, gross margin, capital availability, and retention quality. Lower ratios may still work in fast-payback models.
Future profit is worth less than current profit. Discounting adjusts for time value and risk, making long-horizon LTV comparisons more realistic when you are evaluating campaigns, segments, or pricing strategies.
Yes. Convert annual contract economics into monthly equivalents first. Use monthly ARPA, monthly churn, monthly expansion, and monthly variable costs so the cohort model stays internally consistent.
Important Note: All the Calculators listed in this site are for educational purpose only and we do not guarentee the accuracy of results. Please do consult with other sources as well.