Free Customer Lifetime Value Calculator
Estimate revenue and gross-profit lifetime value from order frequency and customer lifespan, then compare acquisition cost.
Results
Key Ratios
Formula and worked example
Revenue LTV = average order value × annual purchase frequency × customer lifespan in years
At an illustrative $50 order value, three orders a year and a two-year lifespan, revenue LTV is $300. A 40% gross margin gives $120 gross-profit LTV before retention and other operating costs.
Frequently asked questions
Is lifetime value revenue or profit?
Both definitions are used. Revenue LTV measures sales, while margin-adjusted LTV applies a cost or margin assumption. Label the definition before comparing it with acquisition cost.
Is this a prediction of customer retention?
No. The model uses the frequency and lifespan you enter. Compare those assumptions with actual customer cohorts when you have them.
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