Customer Lifetime Value Calculator — Free Tool
Estimate what a customer is worth over the whole relationship. Enter average order value, purchase frequency, and lifespan to see revenue LTV, margin LTV, and first-year value.
Features
- Revenue LTV from order value, frequency, and lifespan
- Margin LTV — the figure to compare against acquisition cost
- First-year value, for payback-period planning
- Gross margin is optional
- Runs entirely in your browser — nothing is uploaded
Frequently asked questions
How is customer lifetime value calculated?
The simple form used here is average order value × purchases per year × customer lifespan in years. Adding gross margin turns that revenue figure into the profit you actually keep.
Should I use revenue LTV or margin LTV?
Margin LTV, whenever you are comparing against what it costs to acquire a customer. Revenue LTV ignores cost of goods and always looks more flattering, which is how acquisition budgets end up underwater.
How do I estimate customer lifespan?
If you know your annual churn rate, lifespan is roughly 1 ÷ churn — 25% annual churn implies about four years. If you do not, use the average age of customers who have already left rather than a hopeful round number.
What counts as a healthy LTV to CAC ratio?
A margin LTV of roughly three times customer acquisition cost is the common rule of thumb for subscription businesses, but it is a heuristic, not a target. Payback period — how long before that customer has repaid acquisition cost — usually matters more to cash flow.
Is my data sent anywhere?
No. Every calculation happens in your browser. Nothing is uploaded, stored, or logged, and no account is required.
