Customer Lifetime Value Calculator
LTV from spend, frequency and churn.
Enter your values
Enter the average order value in $.
Enter the orders per year you are working with.
Enter the gross margin in %.
Enter the annual churn rate in %.
Results update instantly as you type — no submit needed. Your values are remembered on this device, and the shareable link reopens the calculator with exactly these numbers.
- Lifetime value
- $498.67
- Annual gross profit
- $149.60
- Average lifespan
- 3.3 years
- Lifetime revenue
- $906.67
Quick answer
Customer lifetime value is the total gross profit a customer generates before they churn.
LTV = AOV × orders/yr × margin ÷ churn
At a glance
| What it does | LTV from spend, frequency and churn. |
|---|---|
| Category | Business |
| Inputs needed | Average order value, Orders per year, Gross margin, Annual churn rate |
| Main output | Lifetime value |
| Formula | LTV = AOV × orders/yr × margin ÷ churn |
| Cost | Free — no sign-up, no download |
How to use the Customer Lifetime Value Calculator
- 1Enter your average order value and yearly order count.
- 2Enter gross margin percentage.
- 3Enter annual churn to set the customer lifespan.
Inputs explained
- Average order value($)
- Enter the average order value in $.
- Orders per year
- Enter the orders per year you are working with.
- Gross margin(%)
- Enter the gross margin in %.
- Annual churn rate(%)
- Enter the annual churn rate in %.
Worked example
Using the values the calculator loads with:
Inputs
- Average order value68 $
- Orders per year4
- Gross margin55 %
- Annual churn rate30 %
Results
- Lifetime value$498.67
- Annual gross profit$149.60
- Average lifespan3.3 years
- Lifetime revenue$906.67
Frequently asked questions
Should LTV use revenue or profit?
Use gross profit — revenue LTV overstates what a customer is worth.
What LTV:CAC ratio is healthy?
3:1 or better for most subscription businesses.
What do I need to enter into the Customer Lifetime Value Calculator?
Just 4 values: average order value, orders per year, gross margin, annual churn rate. Every field starts with a realistic example, so you can change one number at a time and watch the result update instantly.
How does the Customer Lifetime Value Calculator work out the answer?
Customer lifetime value is the total gross profit a customer generates before they churn. It applies the formula LTV = AOV × orders/yr × margin ÷ churn and shows the working so you can check each step by hand.
Is the Customer Lifetime Value Calculator free, and do I need an account?
It is completely free with no sign-up, no download and no usage limit. Everything is calculated in your browser, so the numbers you type never leave your device.
Results are estimates for general information. For medical, legal, structural or financial decisions, confirm with a qualified professional.