LTV Calculator
Input 70 for 70% margin.
Percentage of customers who leave each month.
Lifetime Value (LTV)
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How to use
- ARPU: Average amount a customer pays you per month.
- Gross Margin: The percentage of that revenue that is profit.
- Churn Rate: The percentage of customers cancelling each month.
FAQ
What is LTV?
Lifetime Value (LTV) predicts the net profit attributed to the entire future relationship with a customer.
Formula
LTV = (ARPU * Gross Margin %) / Churn Rate %