Customer LTV Calculator
Estimate how much revenue and gross profit a single customer generates over their lifetime from your own inputs.
Customer Lifetime Value (LTV)
Enter the metrics below — results update instantly.
How LTV is Calculated
LTV = AOV × Purchase Frequency × Customer Lifespan
Example: If your average order is $75, customers buy 2.5 times per year, and stay active for 3 years, your LTV is $75 × 2.5 × 3 = $562.50. With a 40% margin, your LTV profit is $225.
What is Customer LTV?
Customer Lifetime Value (LTV) estimates the total revenue a business expects to receive from a single customer over the entire period they remain a customer.
How to Calculate
Multiply your average order value by the average number of purchases per year, then multiply by the average number of years a customer stays active. To estimate profit LTV, multiply revenue LTV by your gross margin.
Formulas
LTV (Revenue) = AOV × Frequency × Lifespan
LTV (Profit) = LTV (Revenue) × Gross Margin%
Annual Value = AOV × Frequency
Why It Matters
LTV provides an input for comparing customer value with acquisition cost and for modeling retention or acquisition scenarios using your own business constraints.