Member Lifetime Value Calculator
Calculate your gym member lifetime value (LTV), LTV to CAC ratio, and discover the impact of improving retention on your bottom line.
Member Lifetime Value Calculator
Calculate your gym member LTV, LTV to CAC ratio, and the impact of improving retention.
Want to Learn More?
Dive deeper into gym business strategy and member retention with our comprehensive guides.
The LTV Formula
Understanding member lifetime value helps you make data-driven decisions about acquisition spending and retention investments:
This formula shows why reducing churn has an exponential impact on member value. Cutting churn in half doubles your LTV.
Each 1% reduction dramatically increases member lifespan
PT, classes, and retail can increase LTV by 30-50%
Each referral adds value at zero acquisition cost
Lower CAC improves your LTV/CAC efficiency
Industry Benchmarks
Compare your metrics against industry averages:
| Metric | Budget | Mid-Market | Premium |
|---|---|---|---|
| Monthly Churn Rate | 6-8% | 4-6% | 2-4% |
| Average Member Lifespan | 12-17 months | 17-25 months | 25-50 months |
| LTV to CAC Ratio | 2:1 | 3:1 | 5:1+ |
| Additional Spend % | 10-15% | 20-30% | 40-60% |
Based on industry data from fitness business reports 2024-2025.
Proven Retention Strategies
Tactics that measurably reduce churn and increase LTV:
First 90 days determine long-term retention
Members who try PT stay 2x longer
Community drives accountability
Members who see results stay longer
Pro tip: Combining multiple strategies compounds the effect. Gyms implementing all four typically see 40-50% churn reduction.
Why LTV Matters for Your Gym
Understanding lifetime value transforms how you run your business:
Marketing Budget
Know exactly how much you can spend to acquire a member and still be profitable.
Retention ROI
Quantify the value of retention programs to justify investments in member experience.
Pricing Strategy
Optimize membership pricing and additional services based on true member value.
Business Valuation
Higher LTV directly increases your gym's overall value for investors or sale.
Maximizing Member Lifetime Value
- 1.Focus on the first 90 days - this period determines if a member becomes long-term
- 2.Implement a tiered membership model to capture more value from engaged members
- 3.Create a referral program that rewards both referrer and referee
- 4.Use AI-powered programming like Arvo to deliver personalized plans at scale
- 5.Track leading indicators like visit frequency to predict and prevent cancellations
- 6.Build community through challenges, events, and social features
Frequently Asked Questions
What is Member Lifetime Value (LTV)?
Member Lifetime Value (LTV) is the total revenue a gym can expect from a single member over their entire membership duration. It includes monthly fees, additional purchases like personal training, classes, and merchandise. Understanding LTV helps gyms make smarter decisions about marketing spend and retention investments.
How is Member Lifetime Value calculated?
Member LTV is calculated as: (Average Monthly Revenue per Member) x (Average Member Lifespan in Months). The average lifespan is typically calculated as 1 divided by the monthly churn rate. For example, with a 5% monthly churn rate, average lifespan is 20 months.
What is a good LTV to CAC ratio for gyms?
A healthy LTV to CAC ratio for gyms is 3:1 or higher, meaning you earn at least $3 in lifetime value for every $1 spent acquiring a member. Ratios below 2:1 indicate acquisition costs may be too high or retention needs improvement. Top-performing gyms achieve ratios of 5:1 or higher.
How can gyms improve member lifetime value?
Gyms can improve LTV by: 1) Reducing churn through better onboarding and engagement programs, 2) Increasing average revenue through personal training, classes, and retail, 3) Building community through events and challenges, 4) Improving facility quality and cleanliness, 5) Using fitness technology to enhance member experience.
What is a typical gym member churn rate?
Industry average monthly churn rate for gyms is 4-6%. Budget gyms often see 6-8% monthly churn, while premium facilities may achieve 2-4%. Annual churn typically ranges from 30-50%, meaning gyms replace a third to half of their membership yearly.
Why is reducing churn more valuable than acquiring new members?
Reducing churn is 5-25x more cost-effective than acquiring new members. A 5% improvement in retention can increase profits by 25-95%. Existing members also generate referrals, have higher purchase rates for additional services, and require less marketing spend to maintain.
How do referrals impact member lifetime value?
Referrals significantly boost effective LTV because referred members have zero acquisition cost and typically have higher retention rates (37% higher on average). When calculating true member value, factoring in referral rate shows the multiplier effect of happy members.
What additional revenue streams increase gym member LTV?
Key additional revenue streams include: personal training (highest margin), group classes, nutrition coaching, merchandise and supplements, locker rentals, towel service, and facility upgrades. Gyms with strong secondary revenue often see 30-50% higher LTV than membership-only models.
Increase Member Retention with AI
Arvo for Gyms provides AI-powered workout programming that keeps members engaged, progressing, and coming back. Better results mean longer memberships and higher LTV.
Discover Arvo for Gyms