Customer Lifetime Value (LTV) Calculator

Calculate how much a customer is worth to your business over their entire relationship — and use that number to set smarter acquisition budgets, retention targets, and growth strategies.

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Enter Your Customer Data

Use your average customer metrics. Estimates are fine — even rough LTV is far more useful than no LTV.

Average Purchase Value

Average revenue per transaction or order

Purchase Frequency (per year)

×/yr

How many times a customer buys per year on average

Average Customer Lifespan

years

How long customers stay with you on average

Gross Margin Optional

Reveals profit LTV, not just revenue LTV

Customer Acquisition Cost (CAC) Optional

Enables LTV:CAC ratio — the key unit economics metric

Discount Rate Optional

Time value of money — for discounted LTV (DCF)

Customer Lifetime Value

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Revenue LTV

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Total revenue per customer

Profit LTV

—

After gross margin applied

Annual Customer Value

—

Revenue per year per customer

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What Your LTV Means for Your Business

Translating this number into business decisions

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LTV Benchmarks by Business Model

Business Model	Typical LTV Range	LTV:CAC Target
SaaS (SMB)	$500–$5,000	3:1 – 5:1
SaaS (Enterprise)	$10,000–$100,000+	3:1 – 5:1
Ecommerce	$150–$500	3:1+
Subscription Box	$200–$800	3:1+
Mobile App	$5–$50	2:1 – 4:1
Agency / Services	$5,000–$50,000	5:1 – 10:1
Retail / Local	$100–$500	2:1 – 4:1

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How LTV Changes Your Business Decisions

This is what knowing your LTV actually unlocks

Decision	Without LTV	With LTV
Max acquisition budget	Guess	LTV ÷ 3 = defensible CAC ceiling
Discount strategy	Risky	Calculated — discounts below LTV threshold are safe
Retention investment	Unclear ROI	Extending lifespan by 1yr = significant LTV gain
Channel profitability	CPA comparison	LTV by channel reveals true long-term value
Pricing changes	Risky	Model LTV impact before committing

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How to Increase Your Customer Lifetime Value