Business Finance
Customer Lifetime Value Calculator
Estimate revenue and gross-profit lifetime value from purchase value, frequency, lifespan, margin, churn, and optional CAC.
Gross-profit LTV
$1,260.00
Results update when the form is submitted.
Detailed breakdown
- Revenue lifetime value
- $1,800.00
- Gross-profit lifetime value
- $1,260.00
- LTV-to-CAC ratio
- 4.20
- Estimated yearly value
- $600.00
- Acquisition efficiency indicator
- Efficient
- Model used
- Direct lifespan model: purchase value x frequency x lifespan.
How this calculator works
The calculator uses direct lifespan when churn is blank or zero. When churn is entered, estimated lifespan becomes 1 divided by churn rate.
Formula
ltv = average_purchase_value * purchase_frequency * customer_lifespan * gross_marginExample calculation
A 100 purchase value, 6 purchases per year, 3-year lifespan, and 70% margin gives 1,260 gross-profit LTV.
Important considerations
LTV models are averages. Segment customers by plan, channel, region, or cohort when behavior differs materially.
FAQs
Which model is displayed?
The result states whether it used the direct lifespan model or churn model.
What is a good LTV-to-CAC ratio?
Many SaaS teams use 3:1 as a rough benchmark, but acceptable ratios depend on payback period and cash constraints.
Related tools
Customer Acquisition Cost Calculator, Conversion Rate Calculator, Roi Calculator
Related guides
How to Calculate Customer Acquisition Cost, Customer Lifetime Value Explained
Disclaimer
Results are estimates for planning purposes and are not financial, tax, legal, accounting, or investment advice.