Cohort LTV Analyzer
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What is Cohort LTV Analysis?
Cohort LTV analysis divides customers into groups by signup period or segment and compares their lifetime value side by side. An overall average LTV hides real differences in customer behavior. For example, if Q1 signups churn faster than Q2 signups, the average LTV tells a misleading story. Cohort analysis reveals these hidden differences, showing which customer groups are healthiest and where to focus marketing spend. This tool goes beyond LTV comparison by adding CAC-based unit economics analysis and automated actionable insights.
How to Use
Input Fields Guide
Enter the following for each cohort. You can compare between 2 and 5 cohorts.
| Input | Description | Typical Range |
|---|---|---|
| ARPU | Average revenue per user per month | $10 – $10K+ |
| Monthly Churn | Percentage of customers leaving each month | 0.5% – 15% |
| Customers | Total customers in the cohort | 10 – 10,000+ |
| CAC | Cost to acquire one customer | $10 – $50K |
| Gross Margin | Revenue minus direct costs as percentage | 50% – 90% |
Key Formulas
This tool uses a 120-month finite sum model to calculate LTV, providing more realistic results than the simple infinite series formula of dividing revenue by churn rate.
| Metric | Formula |
|---|---|
| LTV | Σ(t=0..119) ARPU × Margin × (1-Churn)^t |
| LTV:CAC Ratio | LTV ÷ CAC |
| CAC Payback | Month where cumulative gross profit ≥ CAC |
| Retention(t) | (1 - Churn)^t × 100% |
| Customer Lifespan | 1 ÷ Monthly Churn Rate |
Comparison Example
Let us walk through comparing two cohorts.
- Define Cohort A with monthly revenue of $50, 5% monthly churn, 500 customers acquired at $200 CAC each.
- Define Cohort B with monthly revenue of $55, 3.5% monthly churn, 800 customers acquired at $150 CAC each.
- Calculate LTV. Cohort A LTV is approximately $800 while Cohort B is approximately $1,260.
- Compare unit economics. Cohort A has an LTV to CAC ratio of 4.0x while Cohort B has 8.4x. Cohort B is more than twice as efficient.
- Check the Advisor. It recommends focusing acquisition budget on Cohort B.
SaaS Cohort Benchmarks by Stage
Normal ranges for cohort health metrics vary by SaaS growth stage. The table below shows expected metric ranges from Seed through Growth stage.
| Stage | Monthly Churn | LTV:CAC | CAC Payback | Typical ARPU |
|---|---|---|---|---|
| Seed | 8–15% | 1–2x | 18–24 mo | $20–$50 |
| Series A | 5–8% | 2–3x | 12–18 mo | $50–$200 |
| Series B | 3–5% | 3–5x | 6–12 mo | $100–$500 |
| Growth | 1–3% | 5–8x | 3–6 mo | $200–$2,000+ |
High churn and low LTV to CAC ratios are normal at the Seed stage. Focus on reducing churn as you search for product-market fit.
By Series A, churn should stabilize to single digits and unit economics should turn positive. Investors expect LTV to CAC of at least 2x.
Series B requires proof of an efficient growth engine. LTV to CAC of 3x or more and CAC payback under 12 months are benchmarks.
Growth-stage SaaS should show optimized unit economics. Monthly churn below 3% and LTV to CAC above 5x are benchmarks of top performers.
Sources: OpenView SaaS Benchmarks, Bessemer Cloud Index, ChartMogul SaaS Metrics Report
Who Should Use This Tool
- Fundraising preparation: when you need to visualize cohort improvement trends and prove unit economics health to investors
- Pricing decisions: when comparing customer segments on different plans to find which pricing generates the highest LTV
- Channel optimization: when comparing unit economics of customer cohorts by acquisition channel to optimize marketing budget allocation
- Quarterly reviews: when comparing cohorts of new signups by quarter to track how product improvements affect customer retention
- Budget planning: when calculating portfolio-level LTV and acquisition costs to decide next quarter marketing investment size