How do you calculate LTV before investors ask for unit economics?

On Round Funded the LTV calculator turns ARPU, gross margin, and monthly churn into the lifetime value investors model, so you are not quoting vanity revenue LTV from a deck.

LTV is not ARPU times 36 months. Most founders get it wrong.

1. Use gross margin, not revenue. Diligence LTV adjusts for cost of revenue.

2. 2. Use trailing churn, not your best month. One good cohort inflates the number 3 to 5x.

3. 3. Formula investors recognize: ARPU × gross margin / monthly churn.

4. 4. Say that number before they ask for unit economics, then pair it with CAC.

Free check: https://www.roundfunded.com/en/t...