SaaS Lifetime Value Calculator
Parameter |
Description |
Example Value |
Monthly Recurring Revenue (MRR) |
The total monthly revenue from subscribers. |
$10,000 |
Customer Acquisition Cost (CAC) |
The total cost to acquire a new customer. |
$200 |
Average Customer Lifespan |
The average number of months a customer stays subscribed. |
24 months |
Lifetime Value (LTV) |
The total revenue expected from a customer over their lifetime (MRR * Average Customer Lifespan). |
$240,000 |
LTV to CAC Ratio |
The ratio of lifetime value to customer acquisition cost (LTV / CAC). |
1,200 |