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Ubify Core Engineering Team
SOFTWARE ENGINEERS & SYSTEMS ARCHITECTS
About This Tool
The SaaS Pricing & Customer LTV Calculator helps software founders, product managers, and financial analysts model subscription pricing tiers and customer lifetime value against target monthly recurring revenue goals.
### Mathematical Pricing & Retention Formulas The calculator evaluates three interconnected software revenue metrics: - Required Price per User: Determines average monthly subscription billing ($ARPU$) needed to achieve target revenue: $$ARPU = \frac{\text{Target Monthly Recurring Revenue (MRR)}}{\text{Target Active Customers}}$$ - Customer Retention Lifespan: Derives expected customer longevity in months from monthly churn probability: $$\text{Customer Lifespan (Months)} = \frac{1}{\text{Monthly Churn Rate} / 100}$$ - Estimated Customer Lifetime Value (LTV): Projects cumulative gross revenue generated across the customer's average lifecycle: $$\text{Estimated LTV} = ARPU \times \text{Customer Lifespan (Months)}$$
### Worked Numeric Example Consider a growing B2B SaaS product establishing its pricing strategy: - Target MRR: $10,000 per month - Target Customer Base: 200 active paying accounts - Expected Monthly Churn Rate: 5.0% - Calculated Pricing Model: - Required Price per User: $10,000 / 200 = $50.00/month - Average Customer Lifespan: $1 / 0.05 = 20.0\text{ months}$ - Estimated Customer LTV: $50.00 \times 20.0 = $1,000.00 per acquired customer
### In-Browser Processing Note All financial figures, subscription targets, and churn calculations evaluate immediately in client-side React state. No revenue statistics or sensitive company targets are uploaded or saved to remote servers.
How to Use
- 1
Enter your target Monthly Recurring Revenue (MRR) goal in dollars.
- 2
Specify the number of target active paying customers needed to reach that revenue.
- 3
Input expected monthly churn percentage (e.g. 5.0%).
- 4
Review required monthly subscription price per user, projected customer retention lifespan, and total estimated customer lifetime value.
Frequently Asked Questions
How does lowering monthly churn affect estimated customer LTV?
Because customer lifespan is inversely proportional to churn rate (1 / churn), cutting churn in half doubles customer retention duration and doubles estimated lifetime value.
Does this calculator incorporate gross margins or cost of goods sold?
This component focuses directly on gross customer billing and revenue LTV. To factor in hosting COGS and payment processor fees, multiply the resulting LTV by your gross margin percentage.
Are my private revenue projections stored on Ubify servers?
No. All calculations run strictly in local browser memory with zero server telemetry.