LTV is one of the most important metrics every founder should know. If you're running ads, it gives you a clear idea of when you're profitable.
If you're prioritizing retention, it shows whether it makes more sense to invest in product experience instead of spending more to acquire new customers.
And if you're working on improving your valuation, LTV helps investors, acquirers, and partners understand how valuable your business really is.
As a founder, you're juggling a million things. We get it, because we've been there. So we built this simple LTV calculator to help you find your LTV in seconds.
Calculate the lifetime value (LTV) of your customers to optimize growth strategies
Monthly revenue per customer in USD
Percentage of customers that leave each month (e.g., 5.00%)
LTV is an abbreviation for a customer lifetime value which is one of the most important metrics in every startup. It's a metric that helps you understand how much you can spend to acquire a customer without losing money, how you can improve retention and how to show investors the value of your business when you're fundraising.
There are many ways to increase your customer lifetime value. Some of the most effective strategies include reducing churn, offering yearly plans, improving customer experience, upselling complementary products, and providing exceptional support throughout the customer journey.
LTV helps startups understand how much revenue each customer will bring in over the long term. This gives a clear picture of how much you can spend to acquire a customer. If your customer acquisition cost is lower than your LTV, you're on the path to profitability. It also makes it easier to attract investors, especially if you're raising money to fuel growth.
Just enter your average revenue per customer and monthly churn rate into our free LTV Calculator — it'll instantly show you your Customer Lifetime Value.
