Subscription Lifetime Value Calculator
Estimate subscription gross-profit value using a simple monthly churn model.
Your result
FINANCIALEnter your values and select calculate.
On this page How it works & practical examples
How to use the Subscription Lifetime Value Calculator
Use monthly churn as a decimal probability expressed here in percent, not an annual churn rate. The reciprocal of constant churn gives the geometric model’s expected paid lifetime. Multiply that by monthly gross profit to separate revenue value from direct delivery cost.
The calculation
Worked example
$50 monthly revenue, 80% margin and 5% monthly churn give $800 modeled lifetime gross profit and a 4× LTV/CAC ratio at $200 CAC.
Assumptions and limits
This simplified model assumes constant churn, margin and revenue. It excludes discounting, cohort differences, expansion revenue and new acquisition costs. Zero churn is rejected because the infinite-horizon model would not give a finite value.
Common questions
Can I enter annual churn?
Convert it using a suitable retention model first; annual and monthly churn are not interchangeable.
Is this a customer-value guarantee?
No. Real cohorts and payment behavior rarely follow a constant geometric model exactly.