SaaS Lifetime Value (LTV) Calculator
Average Customer Lifetime Value (LTV) is the total revenue that a customer is expected to generate for your business. Calculate the LTV for your SaaS below. Use our Churn Calculator to get your churn rate.
LTV Calculator FAQ
What is Lifetime Value (LTV) for SaaS businesses?
LTV represents the total revenue that a customer is expected to generate over their entire relationship with your SaaS business. It helps you assess the long-term profitability and value of getting new customers and keeping them happy.
How is LTV calculated for SaaS?
Calculating Lifetime Value (LTV) for SaaS involves estimating the total revenue expected from a customer over their entire relationship with the business. One common method to calculate LTV is by using the Average Revenue Per User (ARPU) and the churn rate. There are also other methods to compute LTV, both simpler and more advanced.
What are some ways to increase LTV?
SaaS businesses can increase LTV by improving customer retention, upselling or cross-selling additional products or services, making customers happier. Generally maximizing customer lifetime value by effective marketing and providing great customer service.
How does LTV impact SaaS valuations?
LTV is an important factor in SaaS valuations. It provides insight into the long-term revenue potential and sustainability of the business. Higher LTVs are typically associated with higher valuations, indicating happy customers and steady revenue streams.
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