How to use this calculator
Choose a fixed lifetime, finite retention horizon or infinite geometric retention. Keep all inputs in one period unit (such as months).
Formula and method
Revenue LTV = revenue per active period × expected active periods. Fixed = N; finite retention = (1−r^N)/(1−r); infinite retention = 1/(1−r), for r<1. Contribution LTV = revenue LTV×margin.
Worked example
100 per month at 60% margin and 80% monthly retention has infinite-model expected active months 5, revenue LTV 500 and contribution LTV 300.
Assumptions and supported scope
Expected modeled value, not observed lifetime or discounted cash flow. At 100% retention the infinite sum is unbounded when revenue is positive. Periods must be consistent.
Method references
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