LTV SaaS
- Created by
- Renato Passos, Eng. de Software
- Reviewed by
- Renato Passos, Eng. de Software
Last updated: Apr 18, 2026
Formula
LTV
About this calculator
The SaaS LTV Calculator is a useful tool to calculate the Average Revenue per User (ARPU) and churn rate of a SaaS business.
Based on ARPU and churn, the calculator provides an estimate of the value each customer brings to the business over the life of the contract.
This information is critical for SaaS companies, allowing them to make more accurate financial plans and informed decisions about customer management and resource allocation.
The SaaS LTV Calculator is a simple and easy-to-use tool, but powerful for quick and accurate results.
Frequently asked questions
What is ARPU and why is it important?
ARPU (Average Revenue per User) is the projected monthly revenue per user. It is important because it helps companies understand the projected revenue per user, allowing them to adjust their pricing and marketing strategies.
What is churn and why is it important to calculate?
Churn is the rate of customer cancellation. It is important to calculate because it helps companies understand potential revenue loss and take measures to keep customers satisfied.
When should I use the SaaS LTV Calculator?
Use the SaaS LTV Calculator when you need to calculate the average customer lifetime value in a software as a service (SaaS) business model based on ARPU and churn.
How does the SaaS LTV Calculator work?
The SaaS LTV Calculator works based on the formula LTV (Average Customer Lifetime Value) = ARPU x (1 / churn). Simply enter the values of ARPU and churn to get the result.