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SaaS Lifetime Value Calculator

Calculate customer lifetime value from ARPU, churn, margin, and CAC. Compare against 9 industry benchmarks.

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Customer Lifetime Value

$1,600

LTV:CAC Ratio

8.0:1

Healthy (≥ 3:1)

CAC Payback

2.5 months

Healthy (≤ 12mo)

Monthly Profit

$70

per customer

Customer Lifespan

1.7 years

(20 months)

Annual Churn Rate46.0%

LTV Projection

12 months
$735
24 months
$1,133
36 months
$1,348

Based on current churn and margin

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What is Customer Lifetime Value (LTV)?

Customer Lifetime Value (LTV) is the total net revenue a business can expect from a single customer over the entire duration of their relationship. It is calculated as: LTV = ARPU x Gross Margin / Monthly Churn Rate. A healthy business maintains an LTV:CAC ratio of at least 3:1 — meaning every dollar spent on acquisition returns three dollars in lifetime revenue.

LTV Benchmarks by Industry (2026)

Use these benchmarks to compare your results after calculating your LTV above. All figures are based on median values across industry reports and may vary by region and business maturity.

B2B SaaS

SegmentMonthly PriceAvg ChurnTypical LTV
SMB$50 – $500/mo4 – 6%$1,000 – $5,000
Mid-Market$500 – $5K/mo2 – 3%$50,000 – $150,000
Enterprise$5K+/mo0.5 – 1.5%$300,000 – $1M+

Enterprise SaaS achieves 10–100× higher LTV than SMB not just from price, but from annual contracts and deep workflow integration that drive churn below 2%.

E-commerce / DTC

SegmentAvg OrderRepeat RateTypical LTV
Fast Fashion$40 – $802 – 3×/yr$150 – $300
Premium Beauty$60 – $1203 – 5×/yr$250 – $750
Health Supplements$40 – $706 – 10×/yr$400 – $1,200
Luxury Goods$500+1 – 2×/yr$1,500 – $5,000

Subscription-based DTC brands (supplements, skincare) achieve 2–3× higher LTV than one-time purchase models at similar price points.

Fintech

SegmentMonthly RevAvg ChurnTypical LTV
Neobanking (Retail)$15 – $50/mo2 – 4%$200 – $800
Wealth Mgmt / RoboAUM 0.25–0.5%1 – 2%$1,000 – $5,000+
B2B Payments$1K – $10K/mo1 – 2%$10,000 – $100,000+

Fintech has the highest CAC in any industry (~$1,450 avg), making LTV optimization critical.

Subscription Apps (B2C)

SegmentMonthly PriceAvg ChurnTypical LTV
Streaming / Media$10 – $20/mo5 – 8%$150 – $400
Fitness & Wellness$10 – $30/mo8 – 12%$80 – $300
Dating$20 – $50/mo10 – 15%$100 – $400
Education / Learning$15 – $50/mo7 – 10%$150 – $600

Family and annual plans reduce churn by up to 52%, making plan structure the single biggest LTV lever for consumer subscription apps.

Marketplace / Platform

SegmentTake RateAvg ChurnTypical LTV
Freelance / Services10 – 20%5 – 8%$500 – $3,000
Product Marketplace5 – 15%4 – 7%$800 – $5,000

Marketplaces with built-in payments and dispute resolution retain sellers 40% longer than listing-only platforms.

EdTech

SegmentMonthly PriceAvg ChurnTypical LTV
B2C Courses$15 – $50/mo7 – 10%$150 – $600
B2B Training (SMB)$200 – $2K/mo3 – 5%$3,000 – $20,000

EdTech has the highest churn in B2B SaaS (~9.6% monthly) but also one of the highest LTV:CAC ratios (5:1) thanks to low acquisition costs via content marketing.

Agency / Consulting

SegmentMonthly RetainerAvg ChurnTypical LTV
Marketing Agency$2K – $10K/mo2 – 4%$25,000 – $100,000
Management Consulting$5K – $50K/mo1 – 3%$80,000 – $500,000

Agencies billing as a percentage of ad spend (typically 10–20%) scale LTV automatically as client budgets grow.

HealthTech / Digital Health

SegmentMonthly PriceAvg ChurnTypical LTV
B2C Wellness App$10 – $30/mo8 – 12%$80 – $300
B2B Clinical Platform$500 – $5K/mo2 – 4%$10,000 – $50,000

B2B HealthTech benefits from regulatory switching costs — once a clinic integrates a platform into patient workflows, migration becomes prohibitively expensive.

Creator / Media

SegmentMonthly PriceAvg ChurnTypical LTV
Newsletter / Membership$5 – $20/mo8 – 12%$50 – $200
Online Courses$30 – $100/mo10 – 15%$200 – $800

Creators with community features (Discord, forums) retain subscribers 2× longer than content-only models.

Sources: First Page Sage 2025, Optifai Pipeline Study Q3 2025, Recurly 2025 Churn Report

Frequently Asked Questions

A ratio of 3:1 or higher is considered healthy across most industries. Below 2:1 indicates unsustainable acquisition costs. Above 5:1 may suggest under-investment in growth.

LTV = Average Revenue Per User (ARPU) x Gross Margin / Monthly Churn Rate. For example, a $50/mo SaaS product with 75% margin and 5% monthly churn has an LTV of $750.

Enterprise B2B SaaS typically has the highest LTV ($300K to $1M+), driven by multi-year contracts, high switching costs, and expansion revenue from upselling additional seats or features.

The three highest-impact levers are: (1) reducing churn through better onboarding, (2) increasing ARPU through upsells and plan upgrades, and (3) improving gross margin by automating support costs.