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Customer Lifetime Value Calculator

Calculate how much revenue a customer generates over their entire relationship with your business

Calculate Your LTV

purchases per year

years

What is LTV?

Customer Lifetime Value (LTV) measures the total revenue a business can expect from a single customer over their entire relationship.

LTV should be at least 3x your Customer Acquisition Cost (CAC)
Higher LTV means better unit economics and more room for growth
Track LTV by cohort to identify trends and improve retention

Enter your data to calculate LTV

How to Use LTV in Your Business

Key strategies for leveraging Customer Lifetime Value:

LTV:CAC Ratio

Aim for an LTV:CAC ratio of 3:1 or higher. This means you should earn at least $3 in lifetime value for every $1 spent acquiring a customer.

Increase LTV

Boost LTV by increasing purchase frequency (upsells, cross-sells), raising average order value, or extending customer lifespan through better retention.

Focus on Retention

A 5% increase in retention can increase profits by 25-95%. Invest in customer success, support, and engagement to keep customers longer.

Segment Customers

Calculate LTV by customer segment. High-LTV customers deserve premium support and personalized experiences to maximize their value.

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