SaaS LTV (Lifetime Value)

IndustryChapter 11: SaaS Valuation MetricsFormula 11.2
Open Source · MIT

Calculate the Lifetime Value of a SaaS customer based on Average Revenue Per User (ARPU), gross margin, and monthly churn rate.

Input Parameters

Monthly average revenue per user

Gross margin as decimal (0.80 = 80%)

Monthly customer churn as decimal (0.05 = 5%)