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Lifetime Value Calculator

Calculate a customer's estimated lifetime value from their average order value, purchase frequency, expected customer lifespan, and your profit margin.

How to Use Lifetime Value Calculator
  1. 1Enter the average order value
  2. 2Enter purchases per year
  3. 3Enter the expected customer lifespan in years
  4. 4Enter your profit margin percentage
  5. 5Click Calculate to see the customer's estimated lifetime value
Frequently Asked Questions

LTV = Average Order Value × Purchases per Year × Customer Lifespan (years) × Profit Margin %. This estimates total profit (not revenue) you can expect from one customer over their relationship with you.

It's an estimate you supply — typically based on how long your average customer keeps buying from you before churning. If you don't have this data yet, use an industry benchmark or a conservative estimate.

Same formula — this version is cataloged for general business use rather than specifically for online store customers.

Compare it to your Customer Acquisition Cost (CAC) using the LTV:CAC Ratio Calculator — a healthy business generally needs LTV to be meaningfully higher than CAC.

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