Interest Rate Payment Calculator Excel

Understanding your Customer Lifetime Value (LTV) is critical for scaling any SaaS business. This calculator helps you determine the total net profit you can expect from a single customer over the duration of their relationship with your company. Use this metric to set your maximum Customer Acquisition Cost (CAC).

Results

LTV: $0.00

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Why SaaS LTV Matters

Customer Lifetime Value (LTV) is the North Star metric for subscription-based businesses. It quantifies the long-term health of your customer base. When paired with CAC (Customer Acquisition Cost), it tells you if your business model is sustainable. A healthy SaaS company typically maintains an LTV:CAC ratio of 3:1 or higher.

The Formula Used

LTV = (ARPU × Gross Margin %) / Monthly Churn Rate %

Practical Examples

Tier	ARPU	Churn	LTV (85% Margin)
Starter	$29	5%	$493.00
Pro	$99	3%	$2,805.00
Enterprise	$500	1%	$42,500.00

function calculateSaaSLTV() { var arpuInput = document.getElementById('arpu'); var marginInput = document.getElementById('margin'); var churnInput = document.getElementById('churn'); var arpu = parseFloat(arpuInput.value); var margin = parseFloat(marginInput.value) / 100; var churn = parseFloat(churnInput.value) / 100; var resultContainer = document.getElementById('ltv-result-container'); var ltvDisplay = document.getElementById('ltv-value'); var descDisplay = document.getElementById('lifetime-desc'); if (isNaN(arpu) || isNaN(margin) || isNaN(churn) || arpu <= 0 || margin < 0 || churn <= 0) { alert("Please enter valid positive numbers. Churn rate must be greater than 0%."); return; } // LTV Formula: (ARPU * Margin) / Churn var ltv = (arpu * margin) / churn; var avgLifetimeMonths = 1 / churn; ltvDisplay.innerText = "$" + ltv.toLocaleString(undefined, {minimumFractionDigits: 2, maximumFractionDigits: 2}); descDisplay.innerText = "Based on a " + (churn * 100).toFixed(1) + "% churn rate, your average customer remains active for " + avgLifetimeMonths.toFixed(1) + " months."; resultContainer.style.display = 'block'; // SEO Scroll Effect resultContainer.scrollIntoView({ behavior: 'smooth', block: 'nearest' }); }