Subscription LTV
dtcSubscription Lifetime Value
Definition
The total revenue generated from a subscription customer over their entire relationship with your business.
How to Calculate Subscription LTV
Monthly Subscription Value ÷ Monthly Churn Rate
Example
Scenario: $30/month subscription with 5% monthly churn rate
Calculation: $30 ÷ 0.05 = $600 subscription LTV
What's a Good Subscription LTV?
SaaS typically sees 12-36 month average customer lifespans depending on price point
Common Mistakes
- Not accounting for churn rate changes over time
- Using gross LTV instead of contribution margin LTV
💡 Expert Tip
Track cohort-based LTV over time. Early cohorts often have different retention patterns than later ones.
— Based on $100M+ in managed ad spend
Related Terms
By Kristijan Arapov • Based on $100M+ in managed ad spend • Updated 2026