English Português (Brasil) Español
Blog
Marketing

LTV calculator ?

Enter the average order value, gross margin, how many times a year a customer typically buys, and how many years they stay with you. The calculator works out the annual gross profit per customer and the LTV over their whole lifetime.

Share of gross profit in the order — before acquisition costs

Result

LTV

—

Annual gross profit per customer —

Your inputs are stored in this browser, so everything is still here next time. Nothing is sent to a server.

This calculation is for informational purposes only and does not replace advice from a qualified professional. Formulas and rates may not fit your exact situation — double-check the figures before making decisions.

How it is calculated

Annual gross profit per customer = average order value × margin ÷ 100 × purchases per year. LTV = annual gross profit × years retained — the total profit a customer generates over their whole time with you.

Calculating LTV from revenue instead of gross profit is a common mistake: it inflates the number and makes any ad spend look profitable. Margin is what separates a customer's real value from the turnover they push through you.

LTV only means something next to acquisition cost (CAC): the LTV/CAC ratio is the main health indicator of a customer acquisition model. Below 3, the model usually can't carry the rest of the business's costs at scale; above 5 can be a sign you could spend more aggressively on ads.

Other calculators

Ad unit economics CPC, CPL, CAC, LTV, ROMI and ad cost ratio for one campaign CAC calculator What one acquired customer really costs ROAS calculator How much revenue each dollar of ad spend brings in ARPU calculator How much an average user pays CPM calculator What 1,000 ad impressions cost CPA calculator What one target action costs
All calculators