Subscription customer lifetime value calculator

How much it costs to get a new customer to make at least one purchase. This is usually the sum of all marketing costs (including salaries) over a certain time period (like quarterly or annually) divided by the number of new customers acquired in that same time period.

CAC = Marketing Spend / New Subscribers (for a set time period)

How much money does a typical subscription order generate? If you have a fixed subscription box business, this is the purchase price of your box. If you sell a variety of products as subscriptions, you’ll want to identify an average order value.

ARPC = Gross Revenue / Number of Subscribers (for a set time period)

This the total expense of selling your products. This includes things like shipping, packaging, warehousing, and logistics — in addition to the cost of manufacturing or acquiring your products. You’ll also want to consider transaction fees and revenue sharing with your payment gateway, ecommerce platform, or affiliates.

COGS = (Beginning Inventory + Inventory Purchases + Expenses) - Ending Inventory (for a set time period)

This is also known as retention period. It’s a measurement of how long an average customer is engaged with your business based on the number of orders fulfilled. If you fulfill subscriptions weekly and the average length of a subscription is 40 weeks, you’d use 40. If you only fulfill orders monthly, and the average subscriber still stayed subscribed 40 weeks, you’d use 10 (because 40 weeks works out to roughly 10 months).

You can also think of length within a set period of time, for example, if your subscription is sent out weekly, you could look at the average number of times a customer orders from you over the course of a year (with some people ordering weekly, and others ordering once a month, or once every three months). This can be a useful way to calculate customer LTV year over year.

This LTV Calculator allows you to calculate the estimated lifetime value of your customers based on the information you provide. It is designed to be for informational and educational purposes only and does not constitute professional advice. Bold does not keep any of the data you provide to complete your calculation, nor does Bold guarantee the results or outcomes of any action in reliance of the LTV Calculator.

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