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 — 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

1. Choose a model

   Repeat purchases or subscription.

2. Enter your numbers

   Order value and frequency, or monthly revenue and churn.

3. Add margin and CAC

   See profit LTV, LTV:CAC and payback.

How to calculate LTV

For repeat purchases: LTV = average order value × purchases per year × years as a customer × gross margin. For subscriptions: LTV = average monthly revenue per customer × gross margin ÷ 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

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