ARPU & LTV Calculator
Model your average revenue per user and lifetime value across subscription tiers
What this calculator covers
The ARPU & LTV calculator helps you model the economics of your subscription service before and after launch.
Inputs
| Input | Description |
|---|---|
| Price per tier | Monthly and annual price per plan |
| Tier mix | % of subscribers on each tier |
| Trial conversion rate | % of trials that convert to paid |
| Monthly churn rate | % of subscribers who cancel each month |
| Ad revenue per user | Monthly ad income per free-tier user (if AVOD) |
Outputs
| Output | Description |
|---|---|
| ARPU | Average monthly revenue per subscriber |
| LTV | Expected lifetime value per subscriber at current churn |
| Payback period | Months to recover CAC at current ARPU |
| Break-even | Monthly subscriber count needed to cover costs |
How to use it
- Start with your target price point
- Set conservative churn assumptions (8–12% monthly for a new service)
- Model two scenarios: base case and optimistic
- Run the model against your projected CAC to check payback
Key benchmarks (OTT context)
- Healthy monthly churn: under 5% for established services; 8–12% is normal at launch
- Annual vs monthly mix: aim for 30%+ annual within 12 months
- LTV:CAC ratio: target 3:1 or better before scaling paid acquisition
Download link — the calculator spreadsheet is available via email. Book a call and we'll send it over with your inputs pre-modelled.
Want it pre-filled with your numbers?
Book a monetization call.