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LTV, churn and LTV/CAC calculator

LTV (Lifetime Value) is how much revenue a customer generates across their entire relationship with your SaaS. It depends directly on churn: the lower your cancellation rate, the longer the lifetime and the higher the LTV. Use the calculator below to find your LTV, average customer lifetime, and LTV/CAC ratio.

Tempo de vida do cliente

20.0 meses

1 / churn mensal

LTV (Lifetime Value)

R$ 1.600

ticket x tempo de vida

Relacao LTV / CAC

8.0x

Saudavel: o cliente cobre 3x ou mais o custo de aquisicao.

Payback do CAC

2.5 meses

meses para recuperar o custo de aquisicao

How LTV is calculated

The simple formula is average monthly revenue per account divided by monthly churn rate. If a customer pays $100/month and churn is 5%, average lifetime is 20 months and LTV is $2,000.

  • Lifetime = 1 / monthly churn rate
  • LTV = monthly ARPU x lifetime
  • Include expansion revenue for a more realistic LTV

The LTV/CAC ratio

LTV/CAC shows how many times over a customer covers the cost of acquiring them. The widely used healthy benchmark is 3x or better; below 1x you lose money on every sale.

  • LTV/CAC >= 3: healthy acquisition
  • LTV/CAC between 1 and 3: fix pricing, churn, or CAC
  • LTV/CAC < 1: unsustainable

Why churn matters more than anything

High churn destroys LTV even with strong pricing. Cutting churn extends lifetime in a compounding way and is almost always cheaper than buying more acquisition.

  • Small churn reductions lift LTV disproportionately
  • Better retention shortens CAC payback
  • Focus on activation and recurring value delivery

Frequently asked questions

How do you calculate LTV for a SaaS?

Divide monthly ARPU by your monthly churn rate to get the average lifetime, then multiply by ARPU. Example: $100/month at 5% churn is a 20-month lifetime and $2,000 LTV.

What is a good LTV/CAC ratio?

The healthy benchmark is 3x or higher, meaning each customer generates at least three times what it cost to acquire them. Between 1x and 3x there is room to improve; below 1x the business loses money on each sale.

What is churn?

Churn is your cancellation rate: the percentage of customers (or revenue) lost in a given period. The lower the churn, the longer the customer lifetime and the higher the LTV.

Is the LTV calculator free?

Yes, it is free and requires no signup.

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