LTV Calculator (Customer Lifetime Value)
This calculator estimates customer lifetime value (LTV), the total profit you ca
This calculator estimates customer lifetime value (LTV), the total profit you ca
How to use LTV Calculator (Customer Lifetime Value)
- Choose your business model — subscription (churn-based) or transactional (order-based) — and select a currency.
- Enter your revenue, retention figures, and gross margin; optionally add your acquisition cost per customer.
- Read the customer lifetime value, gross revenue LTV, and LTV:CAC ratio that update instantly below.
About LTV Calculator (Customer Lifetime Value)
This calculator estimates customer lifetime value (LTV), the total profit you can expect from an average customer over the whole relationship. It supports two standard models. The subscription model uses LTV = (monthly revenue per user × gross margin) ÷ monthly churn rate, where average lifespan is 1 ÷ churn. The transactional model uses LTV = average order value × purchases per year × customer lifespan × gross margin. Pick whichever matches how you actually make money.
Set gross margin to 100% and the tool returns lifetime revenue instead of profit. If you add your acquisition cost per customer, it also shows the LTV:CAC ratio and net value per customer, with a quick read against the widely cited 3:1 healthy benchmark.
Everything runs privately in your browser. Nothing you type is uploaded, stored, or sent anywhere, and there is no sign-up. These are model-based estimates, not accounting figures — real LTV varies with cohort behavior, discounting, and changing churn, so treat the output as a planning benchmark rather than a guaranteed number.
Frequently asked questions
- Which model should I use — subscription or transactional?
- Use the subscription (churn-based) model if customers pay on a recurring basis, like SaaS or a membership: it needs revenue per user and a churn rate. Use the transactional (order-based) model for ecommerce or one-off purchases, where you know average order value, how often people buy per year, and roughly how long they stay a customer.
- How is customer lifetime value calculated?
- For subscriptions, LTV = (monthly revenue per user × gross margin) ÷ monthly churn rate, and average lifespan is 1 ÷ churn. For transactional businesses, LTV = average order value × purchases per year × lifespan in years × gross margin. Setting gross margin to 100% gives lifetime revenue instead of lifetime profit.
- What is a good LTV:CAC ratio?
- A ratio near 3:1 or higher is a common healthy target — meaning a customer is worth about three times what you paid to acquire them. Below 1:1 you lose money on each customer. Much above 5:1 can be a sign you are under-investing in growth. Enter your acquisition cost to see your ratio and net value per customer.
- Should I use revenue or profit for LTV?
- Profit-based LTV (revenue times gross margin) is more meaningful for deciding how much you can spend to acquire customers, because it reflects what actually reaches your bottom line. Use the gross margin field to convert. If you only want lifetime revenue, set margin to 100%.
- Is my data private?
- Yes. The entire calculation happens in your browser using JavaScript. No numbers are sent to a server, saved, or shared, and there is no account or sign-up required.
- How accurate is the result?
- It is a model estimate, not an audited figure. It assumes churn, order frequency, and margin stay roughly constant, which real cohorts rarely do. Use it to compare scenarios and set acquisition budgets, and refine it as you gather real retention data.