Lifetime Value (LTV) Calculator
Calculate customer lifetime value and LTV:CAC ratio
Average order or purchase value
Number of purchases per customer per year
Average customer retention period in years
Cost to acquire one customer (enables LTV:CAC ratio)
Quick Examples:
Frequently Asked Questions
What's a good LTV:CAC ratio?
A ratio of 3:1 is generally considered healthy, meaning you earn $3 for every $1 spent acquiring a customer.
How do I calculate customer lifespan?
Customer lifespan = 1 / Churn Rate. For example, if your monthly churn rate is 5%, average lifespan is 20 months.
Should I include profit margin in LTV?
This calculator uses revenue-based LTV. For profit-based LTV, multiply the result by your gross margin percentage.
What is Customer Lifetime Value (LTV)?
Customer Lifetime Value (LTV or CLV) is the total revenue a business can expect from a single customer over the entire duration of their relationship.
How LTV is Calculated
LTV = Average Purchase Value × Purchase Frequency × Customer Lifespan