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BUSINESS MODELS

Customer Lifetime Value Calculator

Calculate finite and infinite geometric customer gross-profit value with explicit churn, discount timing, margin and acquisition cost.

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Calculation steps

Work through one step at a time or reveal the complete calculation. The steps use your current inputs.

    How to calculate

    Sum retention-weighted discounted gross-profit contributions, beginning with the current paid period at time zero.

    LTV_N=revenue×margin×Σ[(1−churn)/(1+discount)]^t, t=0…N−1

    Worked example

    At revenue 50 and gross margin 80%, current-period gross profit is 40. With 5% churn and 1% discount per period, infinite-horizon modeled gross-profit LTV is about 673.333333 before acquisition cost.

    Assumptions and input details

    1–240 paid periods. The current customer is active and pays the first period at time zero; later payments require retention. Churn, margin and revenue are constant and use the same period as discount. No expansion, reactivation, contract term, annual-to-monthly conversion, tax or real cohort forecast is inferred. Zero churn with zero discount is unbounded only in the infinite model; the finite sum remains defined.

    Using this calculator

    Can I enter my own problem?

    Yes. Replace the example values with your own inputs. The result, calculation steps, tables and applicable diagrams update from those inputs. Blank or invalid values clear the result; example values are never silently substituted for missing inputs.

    Are the results exact?

    Results use floating-point arithmetic and displayed rounding. Read the formula, assumptions and any stated data precision before interpreting the result.

    Is my input uploaded?

    The calculation runs in your browser. No account, file upload or external AI service is required. Inputs are not saved between page reloads.

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