Customer LTV Calculator
Estimate customer lifetime value.
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About the Customer LTV Calculator
Estimate customer lifetime value free: average order value × purchases per year × years a customer stays. LTV (also called CLV) sets the ceiling on what you can profitably spend to acquire a customer — if a customer is worth $600 over their lifetime, a $150 CAC is comfortable and a $500 one is trouble. Model how raising retention or order frequency moves the number; small improvements compound dramatically.
How to use the Customer LTV Calculator
- 01Enter your average order value, purchases per year, and customer lifespan.
- 02Read the result instantly — it recalculates as you type.
- 03Adjust the numbers to model different scenarios.
Frequently asked questions
How is LTV calculated?
A simple LTV = average order value × purchases per year × customer lifespan (years).
Why does LTV matter?
It sets the ceiling for what you can profitably spend to acquire a customer (your CAC).
How do I increase customer lifetime value?
Raise retention (the biggest lever), increase purchase frequency with email/loyalty programs, and lift order value with bundles and upsells.