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Lifetime Value Calculator

Calculate Customer Lifetime Value (LTV) from average order value, purchase frequency, customer lifespan, and profit margin — one combined figure with no added bands or tips.

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How to Use Lifetime Value Calculator
  1. 1Enter average order value, purchases per year, and customer lifespan in years
  2. 2Enter your profit margin %
  3. 3Click Calculate to see estimated lifetime value
Frequently Asked Questions

LTV = Average Order Value × Purchase Frequency per Year × Customer Lifespan in Years × Profit Margin %. It estimates the total profit (not revenue) a typical customer generates over their relationship with your store.

It's an estimate you supply — based on how long your typical customer keeps buying before churning. If you don't have exact data, a reasonable estimate from your own repeat-purchase patterns is fine; this tool doesn't calculate lifespan for you.

Profit — the formula multiplies by your profit margin %, so the result is the estimated lifetime PROFIT per customer, not their lifetime spend.

Compare it to your Customer Acquisition Cost using the LTV:CAC Ratio Calculator — a healthy ratio is commonly cited as 3:1 or higher.

Related Tools

Customer Acquisition Cost

Calculate your Customer Acquisition Cost (CAC) by dividing total marketing/ad spend by the number of new customers it brought in — a single, minimal figure with no added bands or tips.

LTV to CAC Ratio Ecommerce

Enter your LTV and CAC figures directly to see the ratio between them, with a healthy/break-even/losing-money read — this tool doesn't calculate LTV or CAC itself, you supply both.

Average Order Value Calculator

Calculate your Average Order Value (AOV) from total revenue and order count, plus general tips for raising it — the tips are standard educational pointers, not personalized to your specific numbers.

Repeat Purchase Rate Calculator

Calculate your repeat purchase rate from repeat customers vs total customers, with excellent/good/low bands against a fixed 25-30% industry-average reference.

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