Customer Lifetime Value Calculator
Estimate Customer Lifetime Value (LTV) — the total revenue you can expect from an average customer over the entire relationship.
How to use the Customer Lifetime Value Calculator
Enter the average order value — how much a customer spends per purchase.
Enter the average purchase frequency — how many times a customer buys per year.
Enter the average customer lifespan in years.
The calculator shows the estimated lifetime value of an average customer.
LTV Formula
LTV = Average Order Value × Purchase Frequency × Customer LifespanExample
- 1.Average order value: $60
- 2.Purchase frequency: 4 times per year
- 3.Customer lifespan: 3 years
- 4.LTV = $60 × 4 × 3 = $720
Frequently Asked Questions
Frequently asked questions about the Customer Lifetime Value Calculator
Why does LTV matter?+
LTV tells you how much you can afford to spend acquiring a customer while staying profitable. Comparing LTV to CAC is one of the most important health checks for a subscription or repeat-purchase business.
Is this LTV calculation exact?+
This uses a simplified historical formula (value × frequency × lifespan). More advanced models also factor in profit margin and discount future revenue to present value.