Customer Lifetime Value (LTV) Calculator
Lifetime value per customer and LTV:CAC ratio
How much is a customer worth over time? Enter your average purchase, how often they buy and how long they stay to calculate customer lifetime value.
Why LTV matters
Customer lifetime value (LTV or CLV) is the total profit you expect from a customer across the whole relationship. It sets the ceiling on what you can afford to spend to acquire one. The key benchmark is the LTV:CAC ratio — lifetime value versus customer acquisition cost. A ratio around 3:1 is widely considered healthy; below 1:1 you lose money on every customer.
Customer Lifetime Value (LTV) Calculator: frequently asked questions
How do you calculate customer lifetime value?
Multiply the average purchase value by purchase frequency per year, your gross margin, and the average number of years a customer stays.
What is a good LTV:CAC ratio?
Around 3:1 is a common target — you earn three times what it costs to acquire a customer. Much higher can mean you're underinvesting in growth.