Customer LTV Calculator
Calculate Customer Lifetime Value (LTV) — the total revenue expected from an average customer.
Calculate
Enter your values below.
Result
Customer LTV
0
Formula used
LTV = Average purchase value × Purchases per year × Customer lifespan
Example: $80 average purchase, 4x/year, 3-year lifespan → LTV = $960.
How to use this calculator
- Enter Average purchase value, Purchases per year, Average customer lifespan (years).
- Press Calculate to see your result instantly.
FAQ
Frequently asked questions
What is Customer Lifetime Value?
The total revenue a business expects to earn from a single customer over the entire relationship.
How is LTV used in decision-making?
It helps set a sustainable Customer Acquisition Cost (CAC) budget — LTV should exceed CAC by a healthy margin.
Does this account for profit margin?
No, this is a revenue-based LTV — multiply by your profit margin for a profit-based LTV instead.
How do I estimate customer lifespan?
Look at historical data on how long customers typically stay active or continue purchasing.