How it works
Distinguish the common contribution/churn shortcut from a finite, explicitly discounted customer-retention scenario.
This is the Ireland planning view, with monetary inputs and outputs in EUR. A currency label does not establish that a tax rate, construction price, coverage rule or legal limit has been verified locally. The inputs and limitations below describe the actual scope.
Input query strings and outputs
Use an input name in this page’s URL as ?name=value, and join additional inputs with &. Portable shared links may instead use the compact ?ac= state parameter.
Input query strings
5-
?monthlyRevenue=Monthly revenue per active customerMoney · Required · Default: 100
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?grossMargin=Contribution gross marginPercentage · Required · Default: 80
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?monthlyChurn=Monthly logo churn probabilityPercentage · Required · Default: 3
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?monthlyDiscount=Monthly discount ratePercentage · Required · Default: 1
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?months=Finite projection horizon, monthsNumber · Required · Default: 60
Outputs
3-
monthlyContributionMonthly contribution per retained customerCurrency · Currency: EUR
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steadyLtvUndiscounted infinite-horizon contribution LTVCurrency · Currency: EUR
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discountedLtvFinite-horizon discounted contribution LTVCurrency · Primary output · Currency: EUR
Formula
finite LTV = sum from month 1 to horizon of contribution × (1 − churn)^(month − 1)/(1 + monthly discount)^month.
Calculations retain numeric precision internally. Displayed values are rounded for readability. Quantities that must be purchased as whole units are rounded up only where the formula explicitly requires it.
Read the inputs before calculating
- Monthly revenue per active customer: Enter the quantity described by the label.
- Contribution gross margin: Enter the quantity described by the label.
- Monthly logo churn probability: Enter the quantity described by the label.
- Monthly discount rate: Enter the quantity described by the label.
- Finite projection horizon, months: Enter the quantity described by the label.
Reproducible worked example
The following is a fictional arithmetic example, not a local quote, a verified claimant or a market forecast. Its values are included so the formula can be checked. The form does not automatically confirm any verification checkbox.
| Input | Example value |
|---|---|
| Monthly revenue per active customer | 100 |
| Contribution gross margin | 80 |
| Monthly logo churn probability | 3 |
| Monthly discount rate | 1 |
| Finite projection horizon, months | 60 |
| Output | Calculated result |
|---|---|
| Monthly contribution per retained customer | EUR 80 |
| Undiscounted infinite-horizon contribution LTV | EUR 2,666.6667 |
| Finite-horizon discounted contribution LTV | EUR 1,822.9681 |
Interpreting a changed assumption
Start with one complete scenario and change only one input when diagnosing a difference. Recheck units, the period of every rate, whether an amount is recurring or one-off, and whether a cost is already included elsewhere. A larger calculated benefit is not evidence that an assumption is more likely to occur.
Limitations
- Inputs are explicit management assumptions. This is not a valuation opinion, tax filing, employment-law assessment or investment recommendation.
- Retention is a constant geometric probability, not a prediction. Expansion revenue, cohort differences, reactivation, acquisition costs and changing margin are excluded; LTV is not revenue unless the margin assumption is 100%.
Frequently asked questions
What does this Customer Lifetime Value result represent?
Distinguish the common contribution/churn shortcut from a finite, explicitly discounted customer-retention scenario. It applies the displayed formula to your inputs; it does not infer omitted facts.
Are the starting amounts verified Ireland prices or legal rules?
No. Numeric defaults are illustrative unless an input or dated reference explicitly identifies a researched component. Currency is EUR; local quotes, eligibility and unsupported rules must be entered and verified separately.
What must I check before relying on the result?
Inputs are explicit management assumptions. This is not a valuation opinion, tax filing, employment-law assessment or investment recommendation.
Can I compare or share different assumptions?
Change one assumption at a time and use the browser-local project or share controls. A shared URL contains the encoded input values; do not include information you do not wish to disclose.
Sources and reference scope
- Stripe customer lifetime value — retrieved 2026-09-25. Customer value and cohort scope. Our explicitly discounted geometric formula is shown separately.
- Stripe customer churn methodology — retrieved 2026-09-25. Opening-cohort churn, not a prediction of constant future retention.
These references support only their stated scope. They are not evidence that every local rule or price needed by the master expansion has been loaded.