Customer LTV Calculator

Estimate lifetime customer value from AOV, frequency, and retention.

Methodology & standardsRuns on your deviceLifetime Revenue = AOV × Orders per Year × Retention Years | LTV Gross Profit = Lifetime Revenue × Gross Margin %

Inputs

Results update live

Presets:

Average order value

Average revenue per order for the cohort.

Orders per customer per year

Average repeat order frequency for one customer.

Average retention (years)

How long customers typically remain active buyers.

Gross margin (%)

Gross margin contribution from each order.

Annual retention cost per customerAdvanced

Premium: loyalty, email, support, and retention tooling cost.

Scenario workspace

Save scenarios and compare outcomes. Local autosave stays on by default for quick planning.

Free Core: 1 saved scenario per tool.

Local browser save only on this device.

Loading saved workspace...

No saved scenarios yet. Save your current assumptions to compare results over time.

Scenario	Plan	Lifetime revenue per customer	Lifetime gross profit	Annual gross profit per customer
Current session	Free	$640.00	$352.00	$176.00

When to use this tool

When acquisition cost is rising and you need to confirm long-term economics.
Before shifting budget from retention to paid acquisition or vice versa.
When evaluating subscription, bundle, or reorder strategies.

FAQ

Frequently asked questions

How the calculation works and where its limits are.

Should LTV be based on revenue or profit?

Revenue LTV is useful for top-line planning, but profit-based LTV is better for acquisition and budget decisions.

How often should I update LTV?

Update monthly or quarterly as retention, margin, and purchase frequency shift across cohorts.

Why can LTV look high but cash flow still be tight?

LTV is long-term value, while CAC is paid up front. Payback speed matters for cash flow stability.