Use one documented boundary
Choose the period, included costs and outcome definition before comparing the result across campaigns or teams.
Customer LTV calculator
Estimate customer lifetime value from revenue, margin and churn.
Compare a basic revenue view with margin-adjusted and expansion-adjusted customer value, then relate it to CAC.
Where the work changes.
Treat the output as a decision input
A calculator makes assumptions visible. It does not replace attribution quality, margin context or direct account review.
Questions before the audit.
- Why use monthly churn?
- Revenue and churn need the same time unit. This calculator uses monthly revenue and monthly churn throughout.
- Why apply gross margin?
- Margin-adjusted LTV estimates the customer value available after the direct cost of providing the product or service.
- Which LTV is used for LTV to CAC?
- The ratio uses margin-adjusted LTV so expansion assumptions do not silently change the acquisition comparison.
Calculate from your numbers.
Basic LTV divides monthly revenue per customer by monthly churn. Margin LTV applies gross margin first. Expansion-adjusted LTV divides margin-adjusted monthly revenue by churn minus expansion and is not computable when expansion meets or exceeds churn. LTV to CAC uses margin LTV.
Review the value model behind your CAC target.
We will connect customer value assumptions to paid media decisions.
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