[ Free tool · Ads and growth ]
Customer lifetime value (LTV) calculator
Lifetime value is the gross profit an average customer brings over the whole relationship. It tells you how much you can afford to spend to win one.
Lifetime value (profit)
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Lifetime revenue
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LTV to CAC
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Enter order value, purchases, years and margin.
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[ How to use it ]
How to use the Customer Lifetime Value Calculator
- Enter the average order value.
- Enter how many times a customer buys in a year and how many years they typically stay.
- Enter your gross margin, and optionally your CAC to see the LTV to CAC ratio.
[ Explained ]
How LTV is calculated
- Revenue per customer
- Average order value × purchases per year × years as a customer
- LTV (gross profit)
- Revenue per customer × gross margin
- Example
- Order 800, 4 orders a year, 2 years, 50% margin: LTV = 800 × 4 × 2 × 0.5 = 3,200.
For subscriptions, use monthly revenue × 12 as the yearly value, and estimate lifespan as 1 ÷ monthly churn rate (in months). Use real data from your CRM or store wherever you can.
[ FAQ ]
Questions about the Customer Lifetime Value Calculator
Should LTV use revenue or profit?
Profit is safer for spending decisions, which is why this calculator applies your gross margin. Revenue-based LTV looks bigger but can lead you to overspend on acquisition.
How do I estimate customer lifespan for a new business?
Start with a cautious guess, such as one year, and update it every quarter from real repeat purchase data. Overestimating lifespan is the most common LTV mistake.
What is LTV to CAC?
Lifetime value divided by customer acquisition cost. Above 1 means a customer earns back what it cost to win them; the higher it is, the more room you have to grow with paid marketing.
[ An invitation ]
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