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.
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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