Customer Lifetime Value (LTV) Calculator
Estimate customer lifetime value from average order value, purchase frequency and customer lifespan. See LTV and your LTV to CAC ratio.
Why lifetime value matters
Lifetime value is the total revenue you expect from a customer across their whole relationship with you, not just their first order. It reframes marketing: you are not buying a single sale, you are buying years of repeat business. A simple estimate multiplies the average order value by how often they buy each year and how many years they stay.
Pair LTV with CAC
LTV on its own is interesting. LTV next to acquisition cost is decisive. The ratio of the two tells you whether your growth is profitable. A widely used benchmark is three to one: a customer worth three times what it cost to acquire them leaves healthy room for profit and overhead. Below one to one, you lose money on every customer you win.
How to use it
Enter your average order value, how many times a customer buys per year, and how many years they typically stay. Add your CAC to see the ratio. The tool returns lifetime value, value per year, and the LTV to CAC ratio. Find your acquisition cost first with the CAC Calculator.
Frequently Asked Questions
How do you calculate customer lifetime value?
Multiply average order value by the number of orders per year, then by the average number of years a customer stays with you.
What is a good LTV to CAC ratio?
Three to one is a common healthy target. It means a customer is worth three times what you paid to acquire them.
Should LTV use revenue or profit?
This tool uses revenue for simplicity. For a stricter view, use gross profit per order instead of order value.
Is it free?
Yes, free and private in your browser.