Customer LTV Calculator

Estimate how much revenue and gross profit a single customer generates over their lifetime and recommended CAC targets.

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Customer Lifetime Value (LTV)

Enter the metrics below — results update instantly.

Customer Lifetime Value (Revenue)
Total revenue per customer over lifetime
Customer Lifetime Value (Profit)
Gross profit per customer over lifetime
Annual Customer Value
Revenue per customer per year
Maximum CAC Recommendation
Conservative (3:1 LTV:CAC)
Moderate (2:1 LTV:CAC)
Aggressive (1.5:1 LTV:CAC)

How LTV is Calculated

LTV = AOV × Purchase Frequency × Customer Lifespan

Example: If your average order is $75, customers buy 2.5 times per year, and stay active for 3 years, your LTV is $75 × 2.5 × 3 = $562.50. With a 40% margin, your LTV profit is $225.

What is Customer LTV?

Customer Lifetime Value (LTV) estimates the total revenue a business expects to receive from a single customer over the entire period they remain a customer.

How to Calculate

Multiply your average order value by the average number of purchases per year, then multiply by the average number of years a customer stays active. To estimate profit LTV, multiply revenue LTV by your gross margin.

Formulas

LTV (Revenue) = AOV × Frequency × Lifespan
LTV (Profit) = LTV (Revenue) × Gross Margin%
Annual Value = AOV × Frequency

Why It Matters

LTV helps you set sustainable CAC targets, decide how much to invest in growth, and prioritize retention vs acquisition. Comparing LTV to CAC determines if your unit economics are healthy.