The SaaS lifetime value calculator is a tool that lets you analyze your SaaS sales and estimate the customer lifetime value (LTV). You will be able to go through the whole sales process step by step and define all parameters that influence it. Read on to discover the meaning of all acronyms that this LTV calculator uses and to get the most of your business!
Make sure to take a look at the online marketing conversion calculator as well to figure out customer acquisition costs.
Our customer lifetime value calculator works in two modes: simple and advanced. Let's begin by analyzing the parameters in simple mode.
gross margin = (revenue - costs)/revenue. It is set to 100% by default - it means that there are no costs per account on your side.
What happens if you don't know the average revenue per account or if it changes each month? In this case you need to use the advanced mode of our calculator and input additional parameters.
Our SaaS lifetime value calculator uses the following equation to perform all calculations:
LTV = [0.5 * 1 / churn * (2 * ARPA + ARPA_growth * (1 / churn - 1))] * margin
Let's assume you run a company that has a SaaS product with multiple subscription plans. You want to find out what is your LTV.