Calculate the total revenue you can expect from a single customer over their entire relationship with your business.
LTV = Avg Order Value × Purchases per Year × Customer Lifespan (years)
LTV = (Avg Order Value × Gross Margin% × Purchases/year) ÷ Annual Churn Rate%
The Customer Lifetime Value (LTV) Calculator projects the total gross profit a business can expect from a single customer over their entire relationship.
Enter your average order value, purchase frequency, and churn rate or expected lifespan. The tool calculates the total value that customer will bring.
Knowing your LTV dictates how much you can afford to spend on acquiring a customer (CAC). A healthy business typically aims for an LTV to CAC ratio of 3:1.
