Customer Lifetime Value (LTV) Calculator
Customer Lifetime Value (LTV) Calculator
Calculate customer lifetime value for ecommerce, services or subscriptions, then compare it with acquisition cost: LTV:CAC ratio and payback period.
- 100% free
- No sign-up
- No API key needed
What is the Customer Lifetime Value (LTV) Calculator?
Customer lifetime value is the total profit an average customer brings over the whole relationship. Knowing it tells you how much you can afford to spend to win a customer β often far more than one sale suggests.
Choose the model that fits your business: repeat purchases (ecommerce, restaurants, services) or recurring revenue (subscriptions, retainers, SaaS). Add your customer acquisition cost to see the LTV:CAC ratio and how many months it takes to earn back what you spent.
Key features of the Customer Lifetime Value (LTV) Calculator
Two models
Repeat-purchase and subscription (churn-based) LTV.
Revenue and profit LTV
Lifetime revenue and lifetime gross profit.
LTV:CAC ratio
With a clear health rating.
Payback period
Months until the acquisition cost is recovered.
How to use the Customer Lifetime Value (LTV) Calculator
Choose a model
Repeat purchases or subscription.
Enter your numbers
Order value and frequency, or monthly revenue and churn.
Add margin and CAC
See profit LTV, LTV:CAC and payback.
How to calculate LTV
For repeat purchases: LTV = average order value Γ purchases per year Γ years as a customer Γ gross margin. For subscriptions: LTV = average monthly revenue per customer Γ gross margin Γ· monthly churn rate. A $50/month customer with 70% margin and 4% monthly churn is worth about $875 in gross profit.
What is a healthy LTV:CAC ratio?
A ratio of 3:1 or higher is widely seen as healthy: each customer returns three times what it cost to acquire. Below 1:1 you lose money on every customer. Far above 5:1 may mean you are under-investing in growth.
Pro tips from our PPC and SEO team
- Use real cohort data from your CRM or store where possible.
- Calculate LTV by acquisition channel.
- Raising retention usually lifts LTV faster than raising prices.
Customer Lifetime Value (LTV) Calculator: frequently asked questions
What is CAC?
Customer acquisition cost: total sales and marketing spend divided by the number of new customers in the same period.
Should LTV use revenue or profit?
Profit (gross margin) is more useful for deciding how much to spend on acquisition, because revenue ignores the cost of delivering the product.
What is a good payback period?
Under 12 months is generally good for subscription businesses; many local service businesses aim to recover CAC on the first job.
Last updated: