Customer Lifetime Value Calculator
LTV from spend, frequency and churn.
Enter your values
Results update instantly as you type — no submit needed.
Results
- 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
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.
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.