Question 1

What is a Customer LTV Calculator?

Accepted Answer

Customer Lifetime Value (LTV or CLV) is the total revenue a business can expect from a single customer throughout their entire relationship. It is one of the most important metrics in business — knowing your LTV helps determine how much you can profitably spend to acquire a customer (CAC).

References

Question 2

How does the Customer LTV Calculator work?

Accepted Answer

Simple LTV = Average order value × Purchase frequency × Average customer lifespan Then: Gross profit LTV = Simple LTV × Gross margin % Then: LTV:CAC ratio: healthy businesses target 3:1 or higher Then: Average customer lifespan = 1 / churn rate.

Question 3

Can you give an example of how to use the Customer LTV Calculator?

Accepted Answer

Example: Input £75 avg order, 4 purchases/year, 3-year lifespan gives a result of LTV = £900 (£75 × 4 × 3 = £900).

Question 4

Is the Customer LTV Calculator free to use?

Accepted Answer

Yes — completely free with no registration, download, or subscription required. All calculations happen instantly in your browser.

Question 5

How accurate is the Customer LTV Calculator?

Accepted Answer

Our Customer LTV Calculator uses verified mathematical formulas and is accurate to multiple decimal places. Results are calculated in real-time using the same methods used by professionals.

Customer LTV Calculator

Customer Lifetime Value (LTV)

What is Customer LTV Calculator?

How to Use Customer LTV Calculator

Example Customer LTV Calculator

LTV:CAC Ratio Benchmarks

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