Simplified customer lifetime value
Simplified customer lifetime value: calculate a transparent estimate from the values and assumptions you provide.
Your inputs stay in your browser. Displayed results are rounded to a maximum of 12 significant digits.
Method and assumptions
Method version 1.0.0 · Updated
Calculate
Formula: LTV ≈ monthly revenue × gross margin / monthly churn
Simplified customer lifetime value: calculate a transparent estimate from the values and assumptions you provide.
- monthlyRevenuePerCustomer
- Average monthly revenue per customer
- grossMarginPercent
- Gross margin (%)
- monthlyChurnPercent
- Monthly churn (%)
Steady-state approximation: assumes constant margin and churn; not a revenue forecast.
Calculate with code
These short examples use the same inputs and core calculation as this tool. Adapt validation and formatting to your application.
JavaScript
const ltv = 25 * 12 * 3 * 0.8; // 720 estimated lifetime value