Customer Lifetime Value (LTV) Calculator
Estimate how much value an average customer generates over their full relationship with your business.
Lifetime revenue
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Lifetime gross profit
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Annual customer value
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Margin-adjusted value
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Summary
Key insights
How customer lifetime value works
LTV estimates how much an average customer is worth to the business across the full duration of the relationship. It is central to pricing, retention, and acquisition decisions.
What this calculator covers
- Annual customer revenue value
- Total revenue generated over the customer lifespan
- Gross margin-adjusted lifetime value
- A clearer view of customer economics
Why founders use this
- To understand how much you can reasonably spend to acquire a customer
- To spot whether retention improvements could materially increase value
- To compare business models with different purchase patterns
- To improve pricing and offer design
Common questions
Quick answers to common founder questions related to this tool.
Should LTV use revenue or profit?
Both can be useful, but gross profit-adjusted LTV is often more helpful for decision-making because it accounts for cost of delivery.
Is LTV only for subscriptions?
No. LTV is useful for subscriptions, ecommerce, services, courses, and any model where repeat value matters.