LTV Calculator

Multiplies average purchase value by how often a customer buys per year and by how many years they typically stay, estimating Customer Lifetime Value (LTV) — the revenue one customer generates over their whole relationship with your business.

Enter the average value of a single purchase, how many purchases a typical customer makes per year, and the expected customer lifespan in years. LTV updates immediately as you change any of the three values.

With an average purchase value of $80, 4 purchases per year, and a 3-year customer lifespan (the pre-filled defaults), LTV = 80 × 4 × 3 = $960 — a typical customer is estimated to generate $960 in revenue over three years.

LTV = average purchase value × purchase frequency (per year) × customer lifespan (years). This is a revenue-based estimate; to get a profit-based LTV, multiply the result by your average profit margin.

LTV on its own is just a revenue projection — its real usefulness comes from comparing it against Customer Acquisition Cost (CAC), since that comparison shows whether the amount you spend to win a customer is justified by what they're worth over time. A commonly cited healthy target is an LTV:CAC ratio of 3:1 or higher; use the CAC Calculator alongside this one.

This is a simplified, average-based model — it assumes every customer buys at the same frequency for the same number of years, which smooths over the reality that a small share of loyal customers often generates a disproportionate share of lifetime revenue. It also ignores discounting (revenue received later is worth less than revenue today) and doesn't factor in the cost of serving or retaining the customer.

LTV is a standard growth and marketing metric used the same way across SaaS, e-commerce and subscription businesses. The calculation runs entirely in your browser; the numbers you enter are never sent to a server.