Subscription CLV and LTV:CAC calculator
For subscription businesses: lifetime value from monthly churn, compared with what it costs to acquire a customer. It opens on a worked example — change any number. Nothing you enter is saved.
Subscription CLV
$1,000
- Average customer lifespan
- 25 months
- LTV:CAC ratio
- 4 : 1
- CAC payback period
- 6.25 months
The formula
- Average lifespan (months) = 1 ÷ monthly churn rate
- Subscription CLV = monthly revenue per customer × gross margin × (1 ÷ monthly churn rate)
- LTV:CAC = CLV ÷ CAC
How to read it
A ratio below 1 means you spend more to win a customer than they are expected to return in margin. The 1 ÷ churn shortcut assumes churn stays steady, so treat the result as an estimate.
Definitions, a full worked example and common pitfalls are in our guide: Customer Lifetime Value (CLV) and the LTV:CAC Ratio.
General information, not accounting, tax or financial advice. Definitions vary between companies — match the formula to how your own systems count.