Customer Lifetime Value Calculator
Calculate CLV for subscription businesses with multiple pricing tiers. Perfect for SaaS, fintech, and membership models with comprehensive churn and retention analysis.
Model Assumptions & How It Works
Cohort Analysis: We start with your current customer base at t=0 and track their behavior over time. No new customer acquisitions are modeled - this shows the value of your existing cohorts.
Churn Model: Uses exponential decay with constant monthly churn rates. Each month, a percentage of remaining customers leave based on their tier's churn rate.
Revenue Recognition: Monthly subscription revenue is recognized at the beginning of each month for surviving customers, then multiplied by gross margin to get profit.
NPV Calculation: Future cash flows are discounted back to present value using your specified annual discount rate to account for time value of money.
Business Parameters
Subscription Tiers
CLV Analysis by Tier
| Tier | Avg Lifetime (months) | CLV (Simple) | CLV (Discounted) | CAC Payback (months) | LTV/CAC Ratio | Total MRR |
|---|---|---|---|---|---|---|
| Basic $0/mo • 1000 customers | 12.5 | $0.00 | $0.00 | 999.0 | 0.00x | $0 |
| Pro $3.99/mo • 500 customers | 20.0 | $59.85 | $43.22 | 8.4 | 1.73x | $1,995 |
| Boost $7.99/mo • 300 customers | 25.0 | $149.81 | $99.19 | 4.2 | 3.97x | $2,397 |
| Premium $9.99/mo • 200 customers | 33.3 | $249.75 | $143.36 | 3.3 | 5.73x | $1,998 |
Understanding Your Metrics
- Simple CLV: Revenue × Gross Margin × Avg Lifetime
- Discounted CLV: NPV accounting for time value of money
- CAC Payback: Months to recover acquisition cost
- LTV/CAC Ratio: Should be 3:1 or higher for healthy unit economics
Recommendations
- ⚠️ Your LTV/CAC ratio is below 3:1. Consider reducing CAC or improving retention.
Free Calculator Limitations
This calculator uses simplified CLV models suitable for quick analysis. For production-grade forecasting, you'll need:
- BG-NBD model implementation for probabilistic CLV with individual customer data
- Cohort analysis to track retention patterns over time
- Expansion revenue modeling (upgrades, cross-sells, upsells)
- Segmentation analysis by acquisition channel, geography, or behavior
- Scenario planning with sensitivity analysis
Need enterprise-grade CLV modeling? I build custom solutions with full BG-NBD implementation, cohort tracking, and integration with your data warehouse.Let's talk →
What Makes This Tool Useful
Built for marketing scientists, data analysts, and MMM practitioners who need accurate adstock modeling.
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Need Enterprise-Grade Solutions?
This free tool demonstrates core concepts. For production Marketing Mix Models, you'll need multi-channel optimization, Bayesian estimation, and automated reporting.