Publication number: ELQ-36952-1
View all versions & Certificate
Life Time Value (LTV) Excel Spreadsheet Calculator
Excel calculator and explanatory article to help you work out your LTV.
The old formula really commonly used to work out LTV stops being effective when you have negative churn and particularly long customer lifetimes. It doesn't reflect real life circumstances when LTV can have no end point. This provides a more recent method of calculating LTV built on DCF analysis that includes associated risks with distant future revenue, and the time value of money. To aid companies in deeper understanding and to manage future revenue streams is the resulting LTV. It gives a more accurate reflection of what an investor is more likely to pay for that future cash flow.
The majority of this article is more relevant for SaaS businesses that no longer have a profitable, scalable, and repeatable sales process, and are deep into their phase of expansion. As an early stage SaaS startup who is continuing to try to achieve market/product fit, or is still trying out different methods of making your sales and marketing scalable and repeatable in a predictable way, you should mess around with LTV and CAC to try and figure out roughly where you are. You should take into consideration that the formulae given here will only produce results that mean something when your marketing processes, sales processes, and costs are scalable and predictable. In place of overthinking LTV and CAC, concentrate your efforts towards trying to find a solution for your issues with market/product fit, and trying to get your customer acquisition to a point where it makes money, its scalable, and its repeatable.
[Co-authored by Stan Reiss.]
This business tool includes
1 Excel Calculator, 1 Explanatory PDF Article
David Skok offers you this business tool for free!
download for free
Add to bookmarks
- Heri Ardin(last updated: 18/04/2018 22:32)Great Calculator
- Prateek Karn(last updated: 28/03/2018 06:38)
People using this tool also downloaded
How to Avoid making 3 Critical Mistakes when Calculating LTVThe top 3 reasons why the LTV calculation is inaccurate and how to address themfinancecost of capitalltvcustomer lifetime valuechurn rategross margin128 remove_red_eyefreeby Jeff Bussgang
Transformer Fault Current CalculationExcel model for calculation of transformer fault current.modelexcelspreadsheetengineeringformulaecalculationelectrical engineeringvoltagetransformer fault currentelectricty99 remove_red_eye
Retail Inventory and Sales WorkbookInventory and Sales Excel Template Workbook for Retail.salesexcelspreadsheettrackingretailformulaeworkbookinventoryautomated108 remove_red_eyefreeby Vend
Burn Rate CalculatorThis burn rate calculator will help you work out when your business will run out of money.cash flowcalculatorburn ratecash burn rateburn rate calculatorcash situation23 remove_red_eyefreeby Commerce Bank
E-Feeder & Cable Calculator SpreadsheetCalculator in Excel to help you work out E-Feeder & Cablecalculatorexcelengineeringspreadsheetselectrical engineeringe-feedercable96 remove_red_eye
Maintenance ROI Calculator: Cost Justification SpreadsheetExcel workbook to help you calculate Maintenance ROI and lay out Cost Justifications.calculatorexcelspreadsheetsworkbookmaintenance roicost justifications245 remove_red_eye
Customer Lifetime Value Excel TemplateThis Excel template helps you to calculate the revenue you receive from a customer over their lifetime.forecastcustomer acquisitionsaassoftware as a servicecacexcelcustomer lifetime valuecltvcac payback period129 remove_red_eyefreeby Ben Murray
Bond Yield Calculator Excel ModelAutomatic generation of scheduled bond payments and the calculation of resulting yield to maturity.debtdebt schedulecalculatorbondsyieldyield to maturitycoupons21 remove_red_eye
Pump Efficiency Calculation ToolCalculation tool to work out the energy efficiency and performance of water pumping facilities.calculatorexcelspreadsheetengineeringcalculationspump efficiency30 remove_red_eye
Cable Designing ProgramFor calculation of cable size and voltage drop.calculatorcalculationelectrical engineeringvoltage dropcable sizemotor and electrical load93 remove_red_eye
Any questions on Life Time Value (LTV) Excel Spreadsheet Calculator?
The user community and author are here to help. Go ahead!