Customer LTV Calculator
Customer Lifetime Value estimates total revenue from an average customer relationship.
Why This Metric Matters
Understanding Customer LTV helps you:
- Make data-driven business decisions
- Benchmark against industry standards
- Identify areas for improvement
- Communicate performance to stakeholders and investors
Industry Benchmarks
Top-performing SaaS companies typically target:
- Net Revenue Retention: >100% (expansion outpaces churn)
- LTV:CAC Ratio: >3:1
- Churn Rate: <2% monthly for SMB, <1% for enterprise
- CAC Payback: <12 months
Calculating Accurately
For reliable metrics: 1. Use consistent time periods 2. Include all relevant costs 3. Track cohorts for deeper insights 4. Compare trends over time, not just snapshots