Quick Marketing Tools

LTV Calculator

Calculate Customer Lifetime Value to understand the long-term revenue generated by each customer and make smarter growth decisions.

About LTV Calculator

Calculate Customer Lifetime Value to estimate the total revenue each customer generates over their relationship with your business.

Customer Lifetime Value (LTV), also known as CLV, estimates the total revenue a business can expect from a customer throughout the entire relationship. Instead of focusing on a single purchase, LTV measures long-term customer value and helps businesses make informed decisions about marketing budgets, retention strategies, pricing, and growth investments. Understanding LTV allows companies to acquire customers more confidently because they know the potential revenue generated over time.

How to use LTV Calculator

Enter your average order value, average purchase frequency, and average customer lifespan. The calculator will estimate the total revenue generated by a typical customer throughout their relationship with your business. Use the result alongside Customer Acquisition Cost to evaluate business profitability and sustainability.

LTV Calculator example

Suppose your average customer spends $75 per order, places 4 orders per year, and remains a customer for 3 years. Your LTV would be $900. If your CAC is $150, your LTV:CAC ratio is 6:1. That may indicate room for acquisition investment, but the conclusion depends on gross margin, payback timing, refunds, and retention assumptions.

Browse more Marketing & Advertising tools or open the related options below.

CAC Calculator Calculate Customer Acquisition Cost to understand how much you spend to win each new customer.
Churn Rate Calculator Calculate your customer churn rate to understand retention health. See loss projections and get actionable retention strategies.
AOV Calculator Calculate your Average Order Value and simulate how AOV increases can dramatically boost revenue without more traffic.
Profit Margin Calculator Calculate your profit margin percentage with visual profit-to-revenue analysis and context checks.
CTR Calculator Calculate your Click-Through Rate instantly. Enter clicks and impressions to measure ad and content performance.
CPM Calculator Calculate your Cost Per 1,000 Impressions to evaluate ad spend efficiency across campaigns and platforms.

These supporting guides are linked only where the topic closely matches this tool.

Increase Customer Lifetime Value Explore practical levers that can affect customer value.
LTV:CAC Benchmarks Use benchmark discussion as context rather than a universal target.

Helpful questions

What is a good LTV:CAC ratio?

A good LTV:CAC ratio depends on margin, payback period, retention certainty, and cash flow. Ratios below 1:1 mean acquisition cost exceeds estimated lifetime value before other costs, while higher ratios still need business-specific review.

How can I increase customer lifetime value?

Increase average order value, improve customer retention, encourage repeat purchases, launch loyalty programs, and provide exceptional customer experiences.

Why is LTV important?

LTV helps businesses understand how much a customer is worth over time, making it easier to allocate marketing budgets and evaluate growth opportunities.

Is LTV the same as revenue?

No. Revenue measures total business income, while LTV estimates the value of an individual customer throughout their relationship with the business.