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Customer Lifetime Value (LTV)

ARPU × gross margin × lifespan. Free online Customer Lifetime Value (LTV) for financial — instant, accurate results, mobile-friendly, no signup needed.

LTV
$675.00

Derivation

  1. ├── 01Givenarpu = 25, margin = 75, lifespan = 36
  2. ├── 02Formulae.arpu × (e.margin / 100) × e.lifespan
  3. ├── 03Substitutee.25 × (e.75 / 100) × e.36
  4. └── 04Compute LTV$675.00
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§01What is

Understanding the Customer Lifetime Value (LTV)

The Customer Lifetime Value (LTV) computes LTV from 3 inputs: arpu monthly ($), gross margin (%), lifespan (months). ARPU × gross margin × lifespan.

Quick calculators for the math that shouldn’t need a notepad — instant, accurate, private to your browser. The Customer Lifetime Value (LTV) sits in that toolkit — it ARPU × gross margin × lifespan. Enter your numbers above and the result updates instantly; every step of the math is shown in the Derivation panel so you can see exactly how the answer was reached.

§02The Formula

How it’s calculated

e.arpu × (e.margin / 100) × e.lifespan

Where

arpu
ARPU monthly ($)
margin
Gross margin (%)
lifespan
Lifespan (months)
§03Practical Example

Step-by-step walkthrough

Scenario

Apply the formula to a realistic set of inputs: ARPU monthly ($) = 25, Gross margin (%) = 75, Lifespan (months) = 36.

  1. 01Start by noting the input — ARPU monthly ($): 25.
  2. 02Start by noting the input — Gross margin (%): 75.
  3. 03Start by noting the input — Lifespan (months): 36.
  4. 04Substitute these values into the formula: e.arpu × (e.margin / 100) × e.lifespan
  5. 05Compute LTV: the calculator returns 675.
  6. 06Cross-check the answer by opening the Derivation panel above — every line of math is shown so you can follow the computation end-to-end.
§04Variants

Common Customer Lifetime Value (LTV) Problems

The formula gets rearranged depending on which variable you need. Here are the patterns you’ll run into in the real world — find the one that matches your problem and follow the worked steps.

01 · PATTERN

ARPU monthly ($) halved

arpu = 12.5 (from 25)

Keep every other input at its default and halve the arpu monthly ($). See how ltv responds.

  1. 01New ARPU monthly ($): 12.5
  2. 02Baseline LTV: 675
  3. 03New LTV: 337.5
  4. 04LTV decreases by 50% → use this sensitivity to plan for real-world variation.
02 · PATTERN

ARPU monthly ($) doubled

arpu = 50 (from 25)

Keep every other input at its default and double the arpu monthly ($). See how ltv responds.

  1. 01New ARPU monthly ($): 50
  2. 02Baseline LTV: 675
  3. 03New LTV: 1350
  4. 04LTV increases by 100% → use this sensitivity to plan for real-world variation.
03 · PATTERN

Gross margin (%) halved

margin = 37.5 (from 75)

Keep every other input at its default and halve the gross margin (%). See how ltv responds.

  1. 01New Gross margin (%): 37.5
  2. 02Baseline LTV: 675
  3. 03New LTV: 337.5
  4. 04LTV decreases by 50% → use this sensitivity to plan for real-world variation.
04 · PATTERN

Gross margin (%) doubled

margin = 150 (from 75)

Keep every other input at its default and double the gross margin (%). See how ltv responds.

  1. 01New Gross margin (%): 150
  2. 02Baseline LTV: 675
  3. 03New LTV: 1350
  4. 04LTV increases by 100% → use this sensitivity to plan for real-world variation.
§05FAQ

Frequently asked questions

Yes. The calculator implements the standard formula as documented and returns exact floating-point results. No approximations are used unless noted in the formula.
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