Free calculator
Membership LTV Calculator
Estimate average member lifetime, lifetime gross profit, and whether your acquisition spend pays back from ARPM, churn, margin, and CAC.
Your inputs
Your results
- Average member lifetime
- 25 months
- Lifetime gross profit (LTV)
- $2,421
- LTV:CAC ratio
- 13.8:1
- CAC payback
- 2 months
Lifetime revenue (estimate): $3,725
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How this is calculated
Membership economics depend on how long members stay and how much margin each month contributes. This is a simplified LTV model for planning.
- Average lifetime (months) = 1 ÷ monthly churn rate. At 4% monthly churn, average lifetime ≈ 25 months.
- Lifetime revenue = average monthly revenue per member × average lifetime months.
- Lifetime gross profit (LTV) = lifetime revenue × gross margin %. Use the same margin definition you track in your P&L.
- LTV:CAC ratio = lifetime gross profit ÷ customer acquisition cost. Many operators target 3:1 or higher (estimate); below 2:1 warrants scrutiny.
- CAC payback months = CAC ÷ monthly gross profit per member. How long until one member's margin repays acquisition cost.
Worked example
At $149 ARPM, 4% monthly churn (~25 month lifetime), 65% margin, and $175 CAC: LTV ≈ $2,420 gross profit and LTV:CAC ≈ 13.8:1 (estimate).
All outputs are planning estimates, not guarantees. Consult the brand FDD and your advisors for decisions.