LTV calculator
Enter average order value, orders a year and years a customer stays to see what a customer is worth. Add your gross margin to see it as profit.
Fill in the first three fields to see your LTV.
Everything is worked out in your browser, and nothing you type is sent anywhere.
What the result means
LTV is what an average customer spends with you over the whole time they keep buying. It sets how much you can afford to pay to win one: compare the gross profit figure, not the revenue, with your cost to acquire a customer. The years figure is an estimate, so try a shorter one too.
The formula
LTV = average order value × orders per year × years a customer stays (× gross margin % ÷ 100, for LTV in profit)
A worked example
A customer spends 60.00 an order, buys 3 times a year and stays for 2.5 years. Multiplying the three gives a lifetime value of 450.00. With a 40% margin, 180.00 of that is profit.