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What is LTV? Customer Lifetime Value Formula & Calculator 2025

LTV (Customer Lifetime Value) explained: formulas, calculator, and SaaS benchmarks. Learn to calculate LTV and optimize the 3:1 LTV:CAC ratio for growth.

May 21, 2025By Michael Rodriguez

LTV is a critical SaaS metric. This comprehensive guide covers everything you need to know: definition, calculation methods, industry benchmarks, and optimization strategies.

What is LTV?

LTV measures key business performance. Understanding LTV is essential for data-driven decision making and sustainable growth.

How to Calculate LTV

The LTV formula and step-by-step calculation guide. Learn the correct method to measure LTV and avoid common mistakes.

LTV Industry Benchmarks

Compare your LTV against SaaS industry standards. See what good, great, and excellent LTV looks like for businesses at different stages.

How to Improve LTV

Proven strategies to optimize LTV. From quick wins to long-term initiatives, discover how to systematically improve your LTV.

Frequently Asked Questions

What is a good LTV for SaaS companies?

Good LTV varies by company stage and business model. Early-stage companies typically have different benchmarks than mature businesses.

How often should I track LTV?

Track LTV monthly at minimum. High-growth companies often monitor LTV weekly or even daily for faster iteration.

How does QuantLedger calculate LTV?

QuantLedger uses ML-powered analytics to automatically calculate LTV from your payment data, with 95% accuracy and no manual work.

Key Takeaways

Mastering LTV is essential for SaaS success. Use QuantLedger to automatically track LTV and get ML-powered insights to improve performance.

Track LTV Automatically

Get instant LTV analytics with QuantLedger

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