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What do repeat customers contribute?
Explore gross-margin lifetime value under a constant monthly churn assumption.
Example scenario
Editable demonstration inputs, not verified industry benchmarks. Enable JavaScript to calculate your own scenario.
- Monthly revenue per customer
- $500
- Gross margin
- 40 %
- Monthly customer churn
- 3 %
- Acquisition cost per customer
- $1,500
Gross-profit lifetime value
Example result only, not a forecast or promise.
- Expected lifetime
- 33.3 months
- LTV / CAC
- 4.4×
- LTV less acquisition cost
- $5,167
What to do with this result
Compare contribution by customer cohort and rerun the model with a shorter customer lifetime before increasing acquisition spend.
Know what is inside the model.
Planning model, not personalized financial advice. Your inputs remain in your browser.
Calculation method
Expected lifetime months = 1 / monthly churn. Gross-profit LTV = monthly revenue × gross margin / monthly churn.
Assumptions and limitations
- Simple steady-state model: constant churn, revenue, and margin.
- No discounting, expansion, cohort changes, or fixed overhead. Do not use for irregular nonrecurring sales.