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LTV Calculator

Free Calculator

Turn ARPU, gross margin and average customer lifespan into customer lifetime value β€” instantly and privately.

100% private

Runs in your browser β€” no numbers leave your device.

Your numbers

$

Average revenue per user, per month.

%

Share of revenue left after direct costs.

How long an average customer stays, in months.

Customer lifetime value (LTV)

$288

Total gross-margin profit an average customer generates over their lifetime.

Lifetime revenue

$360

Total revenue before margin β€” ARPU Γ— lifespan.

How it works

1

Enter ARPU

Add your average monthly revenue per user.

2

Add gross margin

Enter the percentage of revenue left after direct costs.

3

Add lifespan

Estimate how many months an average customer stays.

4

Read your LTV

Lifetime value and lifetime revenue update live.

Win more customers to grow LTV

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What is an LTV calculator and how do you calculate LTV?

Customer lifetime value (LTV) is the total gross-margin profit an average customer generates before they churn. This LTV calculator uses the simplest reliable formula β€” ARPU Γ— gross margin Γ— average lifespan β€” so you get lifetime value from three inputs you already track: how much a customer pays per month, how much of that is profit after direct costs, and how long they stay. It also shows lifetime revenue (ARPU Γ— lifespan) so you can see the number before margin is applied.

LTV matters most next to CAC, your cost to acquire a customer. The LTV:CAC ratio is the clearest signal of sustainable growth: below 1 you lose money on every customer, around 3:1 is the healthy target most SaaS and app businesses aim for, and much higher can mean you are underinvesting in growth. Raising LTV β€” through better retention, higher ARPU, or stronger conversion at the top of the funnel β€” lets you spend more to win each customer and still grow profitably.

Frequently asked questions

How do you calculate LTV?
The simplest LTV formula is ARPU Γ— gross margin Γ— average lifespan. For example, $15 monthly ARPU Γ— 80% margin Γ— 24 months = $288 lifetime value. This calculator does it instantly and also shows lifetime revenue before margin.
What is a good LTV to CAC ratio?
Around 3:1 is the widely used target β€” you earn about three dollars of lifetime value for every dollar spent acquiring a customer. Below 1:1 you lose money per customer; far above 3:1 can mean you are underspending on growth and leaving revenue on the table.
Should LTV use revenue or gross margin?
Use gross margin. Revenue-based LTV overstates value because it ignores the cost of serving each customer. Margin-based LTV reflects actual profit, which is what you can reinvest into acquisition β€” that is why this calculator multiplies by gross margin.
How can I increase customer lifetime value?
Improve retention so customers stay longer, raise ARPU through pricing or upsells, and increase gross margin by lowering direct costs. Stronger top-of-funnel conversion also helps, since better App Store creative brings in higher-intent users who tend to retain and pay more.