Business
Lifetime Value (LTV)
LTV is the total revenue from a customer over their entire relationship. Calculation for subscriptions: ARPU × Gross Margin × (1 / Monthly Churn Rate). For Aiprosol Starter at $997/mo, 80% GM, 4% monthly churn: LTV = $997 × 0.8 × 25 = $19,940.
More detail
LTV is the most-leveraged SaaS number — small changes to churn or expansion compound dramatically. Reducing churn from 5% to 3% increases LTV by 67%. LTV calculations get more accurate with cohort data; for early-stage businesses, model 3-5 scenarios and use the median for planning. Industry tools: ChartMogul, Mosaic, or a custom Looker / Mode dashboard.