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Cohort LTV
Calculator

Calculate customer lifetime value by cohort and compare different scenarios. See how churn affects your revenue over 24 months.

Cohort 1

Number of customers in cohort.

$

Average revenue per user.

%

Percentage lost monthly.

Results

Cohort LTV
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24-Month Revenue
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Customers at 24mo
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Monthly Rev at 24mo
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Cumulative Revenue Over Time

See how revenue builds as customers churn over 24 months.

$0 $0 $0
0 6 12 18 24
Month
Cohort 1

24-Month Revenue Projection

Month-by-month breakdown of customers and revenue.

Month Customers Monthly Rev Cumulative

LTV at Different Churn Rates

See how churn affects customer lifetime value with your current ARPU.

Churn Rate Customer LTV Avg Lifetime Status

Industry Benchmarks

Enterprise SaaS
1-2%

monthly churn

Mid-Market SaaS
2-3%

monthly churn

SMB SaaS
3-5%

monthly churn

What is Cohort LTV?

Cohort LTV is the total revenue you expect from a specific group of customers over their lifetime. Unlike blended metrics, cohorts let you compare acquisition channels and time periods directly.

A cohort of referral customers might have 2% monthly churn while paid ads bring 5% churn. Same ARPU, but referrals are worth 2.5x more. You can't see this without cohort analysis.

The Formula

LTV = ARPU / Churn Rate

Example: $50 ARPU, 4% monthly churn:

$50 / 0.04 = $1,250 LTV
Each customer is worth $1,250 on average over their lifetime.

Why Cohort Analysis Matters

2.5x

Channel LTV Variance

Different acquisition channels often have vastly different retention rates. Referrals at 2% churn vs paid ads at 5% churn means referrals are worth 2.5x more per customer.

38%

Customers Remaining at 24mo

At 4% monthly churn, only 38% of your original cohort remains after 24 months. Understanding this decay curve helps you forecast revenue and plan for growth.

Frequently Asked Questions

What is cohort-based LTV?

Cohort LTV measures the total revenue you can expect from a group of customers acquired at the same time or through the same channel. Instead of averaging all customers together, you track specific groups to see which acquisition sources produce higher-value customers.

How do I calculate LTV per customer?

The simple formula is LTV = ARPU / Churn Rate. If your average customer pays $50/month and you have 4% monthly churn, LTV = $50 / 0.04 = $1,250. This assumes stable ARPU and churn over time.

Why does churn rate matter so much for LTV?

Churn has an exponential effect on LTV. Halving your churn rate doubles your LTV. A cohort with 2% monthly churn has 2x the LTV of one with 4% churn. Small churn improvements compound into massive LTV gains.

How should I compare acquisition channels?

Track each channel as a separate cohort with its own churn rate. Paid ads might bring customers who churn at 6%/month while referrals churn at 2%/month. Even if CAC is similar, the referral cohort has 3x higher LTV.

What's a good LTV:CAC ratio by channel?

Target at least 3:1 LTV:CAC for each channel separately. Some channels may have higher CAC but much higher LTV, making them better investments. Blended ratios hide channel-specific problems.

Should I track cohorts by month or by channel?

Both. Monthly cohorts show if retention is improving over time. Channel cohorts show where to invest acquisition spend. The best analysis combines both - January paid ads vs January organic, for example.

How far out should I project revenue?

24 months captures most of the value for typical SaaS. At 4% monthly churn, about 38% of customers remain after 24 months. For enterprise with 1-2% churn, longer projections make sense.

What about expansion revenue?

This calculator uses a fixed ARPU. In reality, surviving customers often upgrade over time. If your expansion revenue exceeds churn (net negative churn), your actual LTV is higher than this calculation shows.

Track Your Cohorts
in Real-Time

Calculators are useful. Dashboards that update automatically are better. See your actual cohort LTV, retention curves, and channel performance live.

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