Customer Lifetime Value (LTV) Calculator

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Calculate the total financial value a customer brings to your business over their lifespan.

Avg Purchase Value ($)

Purchase Frequency / Year

Lifespan (Years)

Gross Margin (%)

Understanding Customer Lifetime Value (LTV)

Customer Lifetime Value (LTV) represents the total net profit a business makes from a single customer over their entire relationship. It helps set appropriate bounds for marketing budgets and Customer Acquisition Costs (CAC).

Συχνές Ερωτήσεις

LTV should represent net value. Including gross margin accounts for the cost of goods sold, ensuring your LTV calculation isn't artificially inflated by raw revenues.

A healthy SaaS ratio is usually 3:1, meaning the lifetime value of a customer is three times the cost to acquire them.