Subscription LTV Calculator
Discounted, because the revenue arrives slowly.
Subscriber lifetime value
$302.24
$359.60 undiscounted
Discounting matters more at low churn, because the revenue arrives further away. At 5% churn the difference is $57.36; at half that churn it would be considerably larger.
How the Subscription LTV Calculator works
Discounting matters more at low churn, because the revenue arrives further into the future. A subscription with 2% monthly churn has an undiscounted lifetime value nearly double its discounted one — and only one of those figures should inform an acquisition decision.
Not financial advice. Marketplace fees change, and they vary by country, plan and seller status. Every rate here is an editable default, not a quoted price — check the platform's current fee schedule before you price a product against it. This is not tax or business advice.
Frequently asked questions
How is subscription LTV calculated?
Monthly contribution divided by monthly churn gives the simple version. Adding a discount rate to the denominator gives the present value, which is the figure to compare against acquisition cost.
Why does discounting matter more at low churn?
Because low churn means a longer lifetime, and money further away is worth less today. At 10% monthly churn the effect is small; at 2% it is substantial.
Should LTV use revenue or contribution?
Contribution. Serving a subscriber has a real cost, and comparing revenue-based LTV against a fully loaded acquisition cost overstates the ratio.
What discount rate should I use?
Your cost of capital, or the return you could get elsewhere. Ten to fifteen percent annually is common for a growing business; venture-backed companies often use more.