LTV Calculator
Calculate how much value an average customer generates throughout their relationship with your business.
Customer Details
Enter your average customer purchasing behavior and gross margin.
The average amount a customer spends per purchase.
How many purchases an average customer makes each year.
The average number of years a customer remains active.
Your gross profit percentage after direct costs.
LTV Formula
LTV = Average Order Value × Purchases Per Year × Customer Lifespan × Gross Margin
LTV Results
Your estimated customer lifetime value.
Enter your customer details
Your LTV results will appear here.
How LTV is calculated
Customer Lifetime Value (LTV) estimates the total value an average customer generates throughout their relationship with your business. This calculator considers purchase value, purchase frequency, customer lifespan, and gross margin.
For example, a customer spending $100 per order, purchasing 4 times per year, staying for 3 years, and producing a 60% gross margin has an estimated LTV of $720 in gross profit.
Compare LTV with CAC
LTV becomes especially useful when compared with your Customer Acquisition Cost (CAC). A higher LTV relative to CAC generally indicates that your customer acquisition economics are healthier.