Calculator
LTV Calculator
Calculate customer lifetime value from average order value, purchase frequency, customer lifespan, margin, and CAC.
How to use it
Enter average order value for a typical customer purchase.
Enter purchase frequency and average customer lifespan.
Add gross margin to estimate profit-based LTV.
Enter CAC to review the LTV:CAC ratio before scaling acquisition spend.
FAQ
What is LTV?
LTV means customer lifetime value. It estimates how much revenue or gross profit a customer produces over the customer relationship.
How do you calculate LTV?
A simple ecommerce formula is average order value multiplied by purchases per year multiplied by customer lifespan.
Should LTV use revenue or profit?
Revenue LTV is useful for top-line estimates, but profit-based LTV is better when comparing against CAC or paid acquisition cost.
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Related guides
AOV vs LTV: how they work together
AOV and LTV measure different parts of customer value. Learn how average order value affects lifetime value and acquisition decisions.
LTV vs CAC: what marketers should compare
LTV and CAC work together when judging growth quality. Learn what each metric measures and how to use the LTV:CAC ratio.
Payback period vs LTV: what marketers should compare
Payback period and LTV answer different acquisition questions. Learn how to use both when reviewing paid growth.
How to calculate customer lifetime value
Learn a simple LTV formula, see an ecommerce example, and understand when to use revenue LTV or profit-based LTV.
How to calculate marketing funnel conversion rates
Learn how to calculate visitor-to-lead, lead-to-opportunity, and full-funnel conversion rates.
How to calculate customer acquisition payback period
Learn the CAC payback period formula, see a simple example, and understand how payback period helps judge acquisition quality.