Inputs
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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.
Enter average order value, purchase frequency and lifespan to estimate customer lifetime value.
Results update live as you type.
Enter values to calculate.
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.
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.