Estimate how much a typical customer is worth over their whole relationship with your business.
How it works
Customer lifetime value (LTV or CLV) estimates the total revenue one customer brings over time. Enter the average order value, how many times they buy per year (purchase frequency), and their expected lifespan in years. Add an optional gross margin to also see lifetime profit.
Formula: LTV = Average order value x Purchases per year x Lifespan; Lifetime profit = LTV x (Margin / 100).
Advanced options let you use an annual churn rate instead of a fixed lifespan, and enter your CAC for the LTV to CAC ratio.
Everything runs in your browser. Your numbers are never sent to a server, and there is no signup or limit. Your last entries are remembered locally so the calculator is ready next time.
What you will see
- Lifetime revenue (LTV)
- Total revenue one customer is expected to generate before they churn.
- Lifetime gross profit
- The portion of LTV you keep after the cost of goods, shown only when you enter a gross margin.
Frequently asked questions
What is customer lifetime value?
LTV is the total revenue (or profit) you expect from an average customer across the whole time they stay with you. It tells you how much you can afford to spend to acquire a customer while staying profitable.
How do I calculate LTV?
Multiply the average order value by how often a customer buys per year, then by how many years they stay. For example, $50 x 4 purchases x 3 years = $600 lifetime revenue. Multiply by your gross margin for lifetime profit.
Should I use revenue or profit for LTV?
Both are useful. Revenue LTV is simpler and good for quick comparisons; profit LTV (revenue times gross margin) is what you should compare against acquisition cost, because you can only reinvest the profit, not the revenue.
How does LTV relate to CAC?
Compare LTV to your customer acquisition cost (CAC). A common healthy target is an LTV:CAC ratio of about 3:1, meaning each customer is worth roughly three times what you spent to win them. Our CAC Calculator works this out.
Is this LTV calculator free?
Yes, free with no signup. It runs entirely in your browser, so your figures never leave your device.