Customer lifetime value is a measure of how much your average customer will spend during their entire time dealing with your company. SaaS companies often use this metric to inform their general marketing strategies.

Mar 10, 2022 · LTV stands for “lifetime value,” and it’s a key metric for SaaS companies. Determining your company’s LTV is essential to understanding how much money you can afford to spend on acquiring new customers.

Customer lifetime value (CLTV) is the predicted revenue a customer generates over the entire relationship with the company, or "customer lifetime". This metric is useful for making predictions and long-term plans, as you'll want to balance CLTV with …

Jul 29, 2024 · SaaS LTV, or Software-as-a-Service lifetime value, is a that tells you how much money a customer has spent on your SaaS product during their entire time being with your company. It’s an insightful metric for understanding which users provide the most value to your business, and is particularly useful if you’re investing in .

Sep 6, 2024 · Knowing how to calculate LTV (customer lifetime value) impacts marketing strategies and boosts revenue. Get usable information and formulas to scale your SaaS.

Mar 21, 2025 · What is a good LTV for a SaaS company. There’s no one-size-fits-all answer, but a good LTV is one that makes your business profitable and sustainable. Generally, SaaS companies aim for an LTV to CAC ratio of 3:1 — meaning each customer should bring in three times what it cost to acquire them. However, what qualifies as “good” depends on ...

Mar 21, 2025 · What Is Customer Lifetime Value in SaaS? Customer Lifetime Value (LTV) is a measure of how valuable a specific customer (or set of customers) has been, or will be, to the company over the course of their entire relationship. It is based on two key metrics: Longevity with the customer to the company

Sep 7, 2022 · Customer lifetime value (LTV or CLTV) is a ubiquitous SaaS metric. If you have significant variable revenue streams, we must modify the formula to account for this. Variable revenue streams might include usage, processing, and/or transaction revenue lines.

SaaS Lifetime Value calculator calculates the overall value of a customer based on your average revenue per customer, gross margin and churn rate.

Calculating the Lifetime Value (LTV) of a SaaS customer involves more than simple arithmetic; it requires a deep understanding of the customer journey and their long-term financial impact. Begin by determining the Average Revenue Per User (ARPU) and estimating the customer lifespan.