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Lifetime value calculator

Enter average order value, purchase frequency and lifespan to estimate customer lifetime value.

Inputs

Results update live as you type.

Lifetime value
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Enter values to calculate.

Value per year
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Total orders
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Formulas: LTV = average order value x purchases per year x lifespan in years.
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Why LTV changes every budget

Knowing a customer is worth $720 over three years means a $100 acquisition cost is cheap, not expensive. Businesses that price acquisition against first-order profit underbid competitors who bid against full LTV.

Raising LTV

Three levers: higher average order (bundles, upsells), more frequent purchase (subscriptions, reminders), longer lifespan (service quality, loyalty). A 10% lift on each compounds to 33% more LTV.

Lifetime Value Calc FAQs

How do you calculate customer lifetime value?
Multiply average order value by purchases per year by average customer lifespan in years. $60 x 4 orders x 3 years = $720 LTV.
What is a good LTV to CAC ratio?
Aim for LTV at least 3x your customer acquisition cost. Below 3x, growth is fragile; far above it, you may be underinvesting in growth.
How do I find my average customer lifespan?
Divide 1 by your annual churn rate. With 25% yearly churn, average lifespan is 4 years. Use cohort data from your store or CRM for accuracy.
Is this gross or net LTV?
This is revenue LTV. For profit-based decisions, multiply by your gross margin: at 40% margin, a $720 revenue LTV is $288 of gross profit LTV.
Is my data uploaded anywhere?
No. Every calculation happens in your browser with JavaScript. Nothing you enter leaves your device.
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