Customer Lifetime Value (LTV) Calculator
For a subscription business, LTV ≈ average monthly subscription price ÷ monthly churn rate. A $40/month plan with 5% monthly churn has an average lifetime of 20 months and an LTV of about $800. Use the calculator below with your own numbers.
Estimate how much each subscriber is really worth. Enter your average subscription price and monthly churn rate, and this free calculator returns customer lifetime value (LTV), the average customer lifetime, and your current MRR.
How the LTV calculator works
Customer lifetime value is driven by two things: how much a customer pays and how long they stay. This calculator uses the standard subscription formula, where average lifetime is the inverse of your churn rate:
- Average customer lifetime (months) = 1 ÷ monthly churn rate
- LTV = average monthly subscription price × average lifetime (= price ÷ churn rate)
Why LTV matters
LTV tells you the most you can afford to spend acquiring a customer and still be profitable. Compared against customer acquisition cost (CAC), the LTV:CAC ratio is the clearest signal of healthy unit economics — a commonly cited target is 3:1. The fastest ways to raise LTV are to cut churn (especially involuntary churn from failed payments) and lift average order value with bundles and upsells.
Make these numbers automatic
This calculator gives you an estimate from manual inputs. RecurX computes LTV, churn, MRR, ARR, and cohort retention automatically from your live Shopify subscription data — and its built-in dunning recovers failed payments, which directly extends customer lifetime and raises LTV.
Frequently asked questions
How do you calculate customer lifetime value?
For a subscription business, a simple estimate is LTV = average monthly subscription price ÷ monthly churn rate. For example, a $50/month plan with a 4% monthly churn rate gives an average lifetime of 25 months and an LTV of about $1,250 before costs.
Is this LTV calculator free?
Yes, it is completely free and runs in your browser — no signup, no email required. Enter your numbers and the results update instantly.
What is a good LTV?
There is no universal number; LTV should be judged against acquisition cost. Aim for an LTV:CAC ratio around 3:1 or higher. Growing LTV over time (via lower churn and higher order value) matters more than any absolute figure.
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