LTV Calculator
LTV is customer lifetime value, the estimated revenue value of a customer over their lifespan.
LTV = ARPA × (1 / CHURN) | Variable | Meaning |
|---|---|
ARPA | Average revenue per account. |
CHURN | Customer churn rate. |
Worked example
- ARPA (monthly)
- $500
- Monthly Churn
- 2%
- → LTV
- $25,000
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LTV Formula
LTV = ARPA × (1 / CHURN) | Variable | Meaning |
|---|---|
ARPA | Average revenue per account. |
CHURN | Customer churn rate. |
How to Calculate LTV
Worked example
- ARPA (monthly)
- $500
- Monthly Churn
- 2%
- → LTV
- $25,000
Full definition, benchmarks, and common mistakes live on the LTV glossary page ; quick answers are in the LTV FAQ .