LTV Calculator
Calculate Customer Lifetime Value (LTV) to estimate how much revenue and profit an average customer may generate throughout their relationship with your business.
Average amount spent per purchase.
Average number of purchases per customer each year.
Average length of the customer relationship.
Optional: used to estimate profit-based LTV.
Customer Lifetime Value
$0.00
Annual Customer Value
$0.00
Estimated Profit LTV
$0.00
LTV Formula:
Customer Lifetime Value = Average Purchase Value × Purchase Frequency × Customer Lifespan
Customer Lifetime Value = Average Purchase Value × Purchase Frequency × Customer Lifespan
How to Use the LTV Calculator
Enter average order value, purchase frequency and customer lifespan or the fields requested by the tool to estimate customer lifetime value.
Practical Example
If a customer spends USD 50 per order, buys 4 times per year and remains for 3 years, simple revenue LTV is USD 600.
Factors That Affect the Result
Retention, margins, repeat-purchase behavior, refunds, discounts and acquisition channel can all change actual customer value.
Frequently Asked Questions
Is LTV revenue or profit?
It depends on the formula; some models use revenue and others gross margin.
Why compare LTV with CAC?
It helps assess acquisition economics.
Is LTV guaranteed?
No. It is an estimate based on assumptions.