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Primary formula: bounded contribution LTV = contribution per period ร— finite retention weight
Duc Nguyen X.By Duc Nguyen X.ยท Founder, Margin101Last reviewed: View update historyMethodology

Educational only: Business decision support, not accounting, tax or legal advice.

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Update policy: Reviewed when formulas or official dependencies change.

Scope: Market-neutral small-business planning using your own assumptions.

What this planner helps you decide

Best for

Businesses estimating bounded contribution value per customer.

Outputs

Retention weight, bounded contribution LTV and terminal retained share.

Start here

Enter contribution, not revenue, and choose a finite horizon.

Use a different tool when: Do not use this to compare bounded contribution LTV with entered acquisition cost and target ratio; use LTV to CAC Ratio Planner for that decision. Use this tool to estimate bounded contribution value across a chosen retention horizon.

Cash & growth

Customer Lifetime Value: retention weight

Retention weight, bounded contribution LTV and terminal retained share.

Amounts use the same currency as your inputs. No currency conversion is performed.

Decision assumptions

Use one consistent period, contribution and currency basis.

Your numbers stay in this browser

currency units

Contribution, not revenue, for one period. Use one consistent currency and indirect-tax basis.

%

Retained share carried into the next period.

Finite whole-number horizon.

Decision result

Every result is produced by the registered customer and marketing engine.

Preparing export actionsโ€ฆ
Retention Weight
2.95ร—
Bounded contribution LTV
147.60
Terminal Retained Share
51.2%
Horizon Periods
4 periods

Scenario comparison

Each row names the assumption axis changed from the baseline.

ScenarioResultDifference
Entered scenario147.60Baseline
Lower Retention rate per period130.58Not available
Higher Retention rate per period166.79Not available

Save these results, change an input, then compare the updated figures with this baseline.

The baseline is temporary in this tab and is not added to shared scenario links or generated reports.

Calculation details

View calculation detailsView the formulas and inputs used for these results.

Retention Weight

Retention Weightฮฃ retentionRate^t for t=0..Hโˆ’12.95 ratio
Result2.95ร—

Reports ratio for the declared cohort and period using the entered attribution and contribution basis. The engine retains raw precision; formatting never feeds calculation.

Customer Lifetime Value Planner formulas โ†’
Inputs used by these formula steps
Retention WeightContribution Per Customer Period
50
Retention WeightRetention Rate
0.8
Retention WeightHorizon Periods
4

Bounded contribution LTV

Bounded Contribution Ltvcontribution per period ร— retention weight147.60
Result147.60

Reports money for the declared cohort and period using the entered attribution and contribution basis. The engine retains raw precision; formatting never feeds calculation.

Customer Lifetime Value Planner formulas โ†’
Inputs used by these formula steps
Bounded Contribution LtvContribution Per Customer Period
50
Bounded Contribution LtvRetention Rate
0.8
Bounded Contribution LtvHorizon Periods
4

Terminal Retained Share

Terminal Retained ShareretentionRate^(Hโˆ’1)0.51 percent
Result51.2%

Reports percent for the declared cohort and period using the entered attribution and contribution basis. The engine retains raw precision; formatting never feeds calculation.

Customer Lifetime Value Planner formulas โ†’
Inputs used by these formula steps
Terminal Retained ShareContribution Per Customer Period
50
Terminal Retained ShareRetention Rate
0.8
Terminal Retained ShareHorizon Periods
4

Horizon Periods

Horizon Periodsselected finite horizon4 periods
Result4 periods

Reports periods for the declared cohort and period using the entered attribution and contribution basis. The engine retains raw precision; formatting never feeds calculation.

Customer Lifetime Value Planner formulas โ†’
Inputs used by these formula steps
Horizon PeriodsContribution Per Customer Period
50
Horizon PeriodsRetention Rate
0.8
Horizon PeriodsHorizon Periods
4

Inputs used

Contribution Per Customer Period
50
Retention Rate
0.8
Horizon Periods
4

Customer segment LTV comparison

Compare two numeric segment rows through one bounded horizon. Segment labels stay local and are never shared or tracked.

periods
Segment A
currency units
%
currency units
Segment B
currency units
%
currency units
Bounded segment comparison
SegmentContribution / periodRetained-period weightBounded LTVNet LTVRank
Segment A40.002.4497.6067.602
Segment B60.001.96117.6057.601
Bounded LTV delta, B minus A
20.00
Net LTV delta, B minus A
-10.00

Calculation details

View calculation detailsView the formulas and inputs used for these results.

Segment A contribution per period

Segment A contribution per perioduser-entered contribution per customer period40
Result40.00

Calculated only from editable, market-neutral owner-module assumptions. The engine retains raw precision; display rounding never feeds calculation.

Owner methodology โ†’
Inputs used by these formula steps
Segment A contribution per periodHorizon
3
Segment A contribution per periodA Contribution
40
Segment A contribution per periodA Retention
80
Segment A contribution per periodA Acquisition
30
Segment A contribution per periodB Contribution
60
Segment A contribution per periodB Retention
60
Segment A contribution per periodB Acquisition
60

Segment A retained-period weight

Segment A retained-period weightsum(retention rate ^ period index) across the bounded horizon2.44
Result2.44

Calculated only from editable, market-neutral owner-module assumptions. The engine retains raw precision; display rounding never feeds calculation.

Owner methodology โ†’
Inputs used by these formula steps
Segment A retained-period weightHorizon
3
Segment A retained-period weightA Contribution
40
Segment A retained-period weightA Retention
80
Segment A retained-period weightA Acquisition
30
Segment A retained-period weightB Contribution
60
Segment A retained-period weightB Retention
60
Segment A retained-period weightB Acquisition
60

Segment A bounded LTV

Segment A bounded LTVcontribution per period ร— retained-period weight97.6
Result97.60

Calculated only from editable, market-neutral owner-module assumptions. The engine retains raw precision; display rounding never feeds calculation.

Owner methodology โ†’
Inputs used by these formula steps
Segment A bounded LTVHorizon
3
Segment A bounded LTVA Contribution
40
Segment A bounded LTVA Retention
80
Segment A bounded LTVA Acquisition
30
Segment A bounded LTVB Contribution
60
Segment A bounded LTVB Retention
60
Segment A bounded LTVB Acquisition
60

Segment A net LTV

Segment A net LTVbounded contribution LTV โˆ’ acquisition cost67.6
Result67.60

Calculated only from editable, market-neutral owner-module assumptions. The engine retains raw precision; display rounding never feeds calculation.

Owner methodology โ†’
Inputs used by these formula steps
Segment A net LTVHorizon
3
Segment A net LTVA Contribution
40
Segment A net LTVA Retention
80
Segment A net LTVA Acquisition
30
Segment A net LTVB Contribution
60
Segment A net LTVB Retention
60
Segment A net LTVB Acquisition
60

Segment A bounded-LTV rank

Segment A bounded-LTV rankdense descending rank by bounded contribution LTV2
Result2

Calculated only from editable, market-neutral owner-module assumptions. The engine retains raw precision; display rounding never feeds calculation.

Owner methodology โ†’
Inputs used by these formula steps
Segment A bounded-LTV rankHorizon
3
Segment A bounded-LTV rankA Contribution
40
Segment A bounded-LTV rankA Retention
80
Segment A bounded-LTV rankA Acquisition
30
Segment A bounded-LTV rankB Contribution
60
Segment A bounded-LTV rankB Retention
60
Segment A bounded-LTV rankB Acquisition
60

Segment B contribution per period

Segment B contribution per perioduser-entered contribution per customer period60
Result60.00

Calculated only from editable, market-neutral owner-module assumptions. The engine retains raw precision; display rounding never feeds calculation.

Owner methodology โ†’
Inputs used by these formula steps
Segment B contribution per periodHorizon
3
Segment B contribution per periodA Contribution
40
Segment B contribution per periodA Retention
80
Segment B contribution per periodA Acquisition
30
Segment B contribution per periodB Contribution
60
Segment B contribution per periodB Retention
60
Segment B contribution per periodB Acquisition
60

Segment B retained-period weight

Segment B retained-period weightsum(retention rate ^ period index) across the bounded horizon1.96
Result1.96

Calculated only from editable, market-neutral owner-module assumptions. The engine retains raw precision; display rounding never feeds calculation.

Owner methodology โ†’
Inputs used by these formula steps
Segment B retained-period weightHorizon
3
Segment B retained-period weightA Contribution
40
Segment B retained-period weightA Retention
80
Segment B retained-period weightA Acquisition
30
Segment B retained-period weightB Contribution
60
Segment B retained-period weightB Retention
60
Segment B retained-period weightB Acquisition
60

Segment B bounded LTV

Segment B bounded LTVcontribution per period ร— retained-period weight117.6
Result117.60

Calculated only from editable, market-neutral owner-module assumptions. The engine retains raw precision; display rounding never feeds calculation.

Owner methodology โ†’
Inputs used by these formula steps
Segment B bounded LTVHorizon
3
Segment B bounded LTVA Contribution
40
Segment B bounded LTVA Retention
80
Segment B bounded LTVA Acquisition
30
Segment B bounded LTVB Contribution
60
Segment B bounded LTVB Retention
60
Segment B bounded LTVB Acquisition
60

Segment B net LTV

Segment B net LTVbounded contribution LTV โˆ’ acquisition cost57.6
Result57.60

Calculated only from editable, market-neutral owner-module assumptions. The engine retains raw precision; display rounding never feeds calculation.

Owner methodology โ†’
Inputs used by these formula steps
Segment B net LTVHorizon
3
Segment B net LTVA Contribution
40
Segment B net LTVA Retention
80
Segment B net LTVA Acquisition
30
Segment B net LTVB Contribution
60
Segment B net LTVB Retention
60
Segment B net LTVB Acquisition
60

Segment B bounded-LTV rank

Segment B bounded-LTV rankdense descending rank by bounded contribution LTV1
Result1

Calculated only from editable, market-neutral owner-module assumptions. The engine retains raw precision; display rounding never feeds calculation.

Owner methodology โ†’
Inputs used by these formula steps
Segment B bounded-LTV rankHorizon
3
Segment B bounded-LTV rankA Contribution
40
Segment B bounded-LTV rankA Retention
80
Segment B bounded-LTV rankA Acquisition
30
Segment B bounded-LTV rankB Contribution
60
Segment B bounded-LTV rankB Retention
60
Segment B bounded-LTV rankB Acquisition
60

Bounded LTV delta, B minus A

Bounded LTV delta, B minus Asegment B bounded contribution LTV โˆ’ segment A bounded contribution LTV20
Result20.00

Calculated only from editable, market-neutral owner-module assumptions. The engine retains raw precision; display rounding never feeds calculation.

Owner methodology โ†’
Inputs used by these formula steps
Bounded LTV delta, B minus AHorizon
3
Bounded LTV delta, B minus AA Contribution
40
Bounded LTV delta, B minus AA Retention
80
Bounded LTV delta, B minus AA Acquisition
30
Bounded LTV delta, B minus AB Contribution
60
Bounded LTV delta, B minus AB Retention
60
Bounded LTV delta, B minus AB Acquisition
60

Net LTV delta, B minus A

Net LTV delta, B minus Asegment B net LTV โˆ’ segment A net LTV-10
Result-10.00

Calculated only from editable, market-neutral owner-module assumptions. The engine retains raw precision; display rounding never feeds calculation.

Owner methodology โ†’
Inputs used by these formula steps
Net LTV delta, B minus AHorizon
3
Net LTV delta, B minus AA Contribution
40
Net LTV delta, B minus AA Retention
80
Net LTV delta, B minus AA Acquisition
30
Net LTV delta, B minus AB Contribution
60
Net LTV delta, B minus AB Retention
60
Net LTV delta, B minus AB Acquisition
60

Inputs used

horizon
3
aContribution
40
aRetention
80
aAcquisition
30
bContribution
60
bRetention
60
bAcquisition
60
Open this calculator with preset values

This calculator supports documented, shareable scenario URLs. Compatible assistants and applications can construct links using the parameters below.

Scenario links contain only allowlisted numeric and closed-choice inputs shown in the URL; Margin101 excludes free text and identifying fields. Anyone you share the URL with can read those numbers, so do not include private or identifying data.

Example: https://margin101.com/tools/customer-lifetime-value/?sv=1&contributionPerCustomerPeriod=50&horizonPeriods=4&retentionRate=0.8

ParameterMeaningUnitAllowed valuesPresenceDefault
contributionPerCustomerPeriodContribution, not revenue, for one period. Use one consistent currency and indirect-tax basis.currency units/customer/period0 to 10000000Required50
horizonPeriodsFinite whole-number horizon.periods0 to 120Required4
retentionRateRetained share carried into the next period.decimal share retained/period0 to 1Required0.8

Customer Lifetime Value: retention weight

Bounded contribution LTV values the entered contribution and retention sequence only across the selected finite horizon.

Formula summary

Primary formula
bounded contribution LTV = contribution per period ร— finite retention weight

Read the full methodology

Data used here

  • The estimate uses your inputs and the general business formula documented in the methodology.

Decision checks

Act on the result

Use bounded contribution LTV to set the maximum customer-retention or acquisition investment for that horizon.

Stress-test the decision

Retest retention rate per period as a percentage and contribution per customer per period in currency units.

When this estimate can be misleading

  • Attribution, incrementality, conversion and retention are user-entered assumptions, not causal claims or forecasts.
  • Use one consistent period, currency, contribution and indirect-tax basis.
  • This is educational decision support, not financial, tax, legal or accounting advice.
  • Bounded contribution LTV values the entered contribution and retention sequence only across the selected finite horizon.

Educational estimate, not advice. See all assumptions & limitations โ†’

Related reading

Guides to interpret the decision and its assumptions.

Frequently asked questions

How do I estimate bounded contribution value across a chosen retention horizon?

Use bounded contribution LTV to set the maximum customer-retention or acquisition investment for that horizon.

Which planning assumptions should I stress-test?

Compare a plausible alternative scenario and verify the decision-critical assumption that changes the plan most.