Customer Lifetime Value Calculator
Estimate simple customer lifetime value.
Customer Lifetime Value measurements
Enter your values, then calculate.
Result
How to calculate customer lifetime value
Customer Lifetime Value (LTV) estimates the total revenue a business can expect from a typical customer over the full relationship.
How the calculation works
LTV = Average purchase value × Purchases per year × Average customer lifespan (years).
Example
$60 average purchase, 8 purchases/year, 3-year average lifespan: 60×8×3 = $1,440.
Frequently asked questions
How is Result calculated?
Result = [Average purchase value] × [Purchases per year] × [Average customer lifespan].
Is the Customer Lifetime Value Calculator free to use?
Yes — every calculator on Simple Calculator Tools is free, runs in your browser, and does not require an account.
Customer Lifetime Value Calculator
LTV = Average purchase value × Purchases per year × Average customer lifespan (years).
Let's understand your customer lifetime value result.
Calculate a result above and this guide will help you interpret it using this calculator's own formula and explanation.
Pro Tips for Customer Lifetime Value
- This simplified version gives revenue-based LTV; for a more precise figure, multiply by gross margin percentage to get profit-based LTV.
- Compare LTV against customer acquisition cost (CAC) — a healthy ratio is often cited as 3:1 or higher.
Common Customer Lifetime Value Mistakes to Avoid
- Comparing revenue-based LTV directly against CAC as if it were profit, when a true apples-to-apples comparison should use profit-based LTV.
When to Use This Calculator
Customer Lifetime Value (LTV) estimates the total revenue a business can expect from a typical customer over the full relationship.