Free LTV Calculator – Quickly determine your Customer Lifetime Value (LTV) by entering your ARPU, gross margin, and churn rate. Discover the long-term value of your customers and use the insights to refine your marketing strategies.

Average Revenue Per User (ARPU):

Lifetime Value (LTV) Calculator

You can also use the CPM Calculator,  Impression Calculator,  Cost Calculator, ROAS Calculator, viewability Calculator, and Customer Acquisition Cost (CAC) Calculator.

Understanding Customer Lifetime Value (LTV)

Customer Lifetime Value (LTV) is a key metric that measures the total revenue a customer generates over their relationship with your business. It helps you understand the long-term value of your customers and guides strategies for acquisition and retention.

Calculate Your LTV with Ease

Our LTV calculator makes it simple to calculate by factoring in the following:

  • Average Revenue Per User (ARPU): The average revenue a customer generates over a specific period (e.g., monthly or annually).
  • Gross Margin (%): The percentage of revenue left after accounting for the direct costs of delivering your product or service.
  • Churn Rate (%): The percentage of customers who stop using your product or service within a given timeframe.

Enter these values into our calculator to instantly determine your LTV.

Why Calculate LTV?

LTV is essential for marketing professionals because it helps with:

  • Customer Acquisition Strategy: Knowing your LTV allows you to determine the maximum cost you can afford to acquire new customers.
  • Marketing Budget Allocation: Allocate your budget efficiently by focusing on channels that attract high-value customers.
  • Customer Retention: Prioritize campaigns that nurture existing customers to maximize their long-term value.
  • Revenue Forecasting: LTV helps predict future revenue based on your current customer base and acquisition efforts.

When and How to Use LTV

  • Campaign Evaluation: Compare customer acquisition costs to LTV to assess the effectiveness of marketing campaigns.
  • Pricing Strategies: Use LTV to develop profitable pricing models.
  • Market Segmentation: Segment customers by LTV to target your marketing and retention efforts more effectively.
  • Product Development: Focus on features that improve retention and customer value by leveraging LTV insights.

By incorporating LTV into your strategy, you can make smarter decisions that enhance customer relationships and drive long-term business success. Use our LTV calculator today to unlock valuable insights and optimize your customer lifecycle strategies.