Calculate LTV & Profitability
2025 LTV:CAC Benchmarks
| Industry | Good | Excellent | Top 10% |
|---|
Aim for LTV:CAC > 3:1
Customer Lifetime Value Calculator 2025: LTV, CLV — Profit Per Customer
How much is a customer worth? Our customer lifetime value calculator forecasts LTV using ARPU, churn, margin, CAC — for SaaS, e-commerce, retail, services.
In 2025, LTV drives marketing spend and valuation.
LTV Formulas
Basic: LTV = ARPU × Lifespan
Churn-Based: LTV = ARPU ÷ Monthly Churn Rate
Profit LTV = (ARPU × Gross Margin %) ÷ Churn Rate
LTV:CAC = LTV ÷ CAC
Why LTV Matters in 2025
AI personalization, zero-party data, and omnichannel make high-LTV customers gold.
How to Use the Calculator
- Enter ARPU and Gross Margin %
- Input monthly churn %
- Add CAC
- Lifespan auto-calculated or manual
- Click “Calculate” — see LTV, ratio, payback
Real-World Examples
Example 1: SaaS
ARPU: $99, Margin: 80%, Churn: 4%
LTV: $1,980 → CAC: $500 → Ratio: 4:1
Example 2: E-commerce
ARPU: $50, Margin: 35%, Churn: 20%
LTV: $87.5 → CAC: $30 → Ratio: 2.9:1
2025 LTV:CAC Benchmarks
| Industry | Good | Excellent | Top 10% |
|---|---|---|---|
| SaaS | 3:1 | 5:1 | >8:1 |
| E-commerce | 2:1 | 3:1 | >4:1 |
| Retail | 1.5:1 | 2.5:1 | >3:1 |
| Services | 4:1 | 6:1 | >10:1 |
Increase LTV
- Upsell/Cross-sell: Bundles
- Reduce Churn: Onboarding, support
- Raise ARPU: Tiered pricing
- Improve Margin: Efficiency
2025 Trends
- AI Prediction: Churn risk
- Subscription Fatigue: Flexible plans
- Loyalty NFTs: Token-gated perks
- Cohort Analysis: Segment LTV
LTV vs CLV
LTV = revenue focus. CLV = profit focus (after costs). This tool does both.
Integrate with Other Tools
Common Mistakes
- Using gross revenue not margin
- Ignoring cohort differences
- High CAC, low LTV
- Not updating monthly
Conclusion: LTV Is Your North Star
Track customer lifetime value monthly. Grow ARPU. Kill churn. Justify CAC.
In 2025, high-LTV businesses dominate.
Not investment advice. Consult a CFO.
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