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Small Business · Return

Customer Lifetime Value

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Use customer lifetime value to estimate the total gross profit an average customer generates across the time they stay with you.

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Subscription LTV

Avg Monthly Revenue * (Gross Margin% / 100) * Lifetime Months

$50/month at 80% margin for 24 months is $960 of lifetime value.

Check your inputs before you rely on the result — calculations are informational only and depend entirely on the numbers you enter. See our Terms.

Variables and units

  • Avg Monthly Revenue

    Average revenue per customer per month.

    currency

  • Gross Margin

    Gross margin percentage on that revenue.

    percent

  • Lifetime Months

    Average months a customer stays.

    count

Common mistakes

  • Using revenue instead of gross profit.
  • Overestimating how long customers stay.

Step-by-step example

Subscription LTV

$50/month at 80% margin for 24 months is $960 of lifetime value.