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Customer Lifetime Value (LTV) Calculator

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Customer lifetime value (LTV) estimates the total revenue a customer generates over their relationship with you. A simple model is average order value × purchases per year × customer lifespan in years. This calculator returns LTV instantly.

Estimated LTV

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How LTV is calculated

This simple model: LTV = average order value × purchase frequency per year × customer lifespan. For a margin-accurate figure, multiply by gross margin. LTV is most useful next to CAC — the LTV:CAC ratio is the single clearest signal of whether your growth economics work.

FAQ

Questions

Should LTV use revenue or margin?

For decisions, use gross-margin LTV (multiply the revenue LTV by your gross margin %). Revenue LTV overstates the value a customer actually contributes to the business.

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