# Customer lifetime value scenario calculator

> Estimate contribution-based customer lifetime value with simplified assumptions.

[Open tool](https://www.toolcabana.com/ur/customer-lifetime-value-scenario-calculator) · [Business and ecommerce](https://www.toolcabana.com/ur/category/business-and-ecommerce)

Tool ID: customer-lifetime-value-scenario-calculator. Requested language: ur. Description language: en. Complete guide translation: no; untranslated sections use English.

## Overview (en)

The customer lifetime value scenario calculator estimates contribution-based LTV from monthly revenue per customer, contribution margin and monthly churn, then compares it with acquisition cost. Expected lifetime in months is 100 divided by the churn percentage. It reports expected lifetime, contribution LTV, LTV minus CAC and the LTV to CAC ratio, using a steady-state churn model.

## Supported tasks (en)

Estimate contribution-based customer lifetime value with simplified assumptions.

## Steps (en)

1. Enter the requested values in the settings panel.
2. Set average monthly revenue per customer, contribution margin (%), monthly churn (%), acquisition cost per customer.
3. Run customer lifetime value scenario calculator, review the output, then use the available copy or download controls.

## Settings

- Average monthly revenue per customer (en; key: revenue; type: number); minimum: 0; maximum: 1000000000000
- Contribution margin (%) (en; key: margin; type: number); minimum: 0; maximum: 100
- Monthly churn (%) (en; key: churn; type: number); minimum: 0.01; maximum: 100
- Acquisition cost per customer (en; key: cac; type: number); minimum: 0; maximum: 1000000000000

## Limitations (en)

Local bounded calculations. Numeric inputs must be finite and within the visible ranges. Lists and tables have operation-specific limits. Models, estimates and supplied rates must be checked against your intended use.

## Privacy and connections (en)

This operation processes its source in your browser. Copy and download are explicit actions; source input is not saved in an account or history.

## Questions (en)

### How is customer lifetime calculated from churn?

Expected lifetime in months is 100 divided by monthly churn percentage. A 5% monthly churn gives an expected lifetime of 20 months. Churn must be at least 0.01% to avoid an infinite result.

### What does contribution LTV mean in this calculator?

It is monthly revenue per customer times contribution margin times expected lifetime. With 50 revenue, 60% margin and 20 months, contribution LTV is 600. It counts margin, not total revenue.

### What does it mean when LTV:CAC shows undefined?

The ratio divides LTV by acquisition cost, so it cannot be calculated when CAC is 0. LTV minus CAC is still shown. The model excludes discounting and changes in customer behavior over time.

### Where is my input processed?

This operation processes its source in your browser. Copy and download are explicit actions; source input is not saved in an account or history.

### What are the input limits?

Local bounded calculations. Numeric inputs must be finite and within the visible ranges. Lists and tables have operation-specific limits. Models, estimates and supplied rates must be checked against your intended use.

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