LTV Calculator
Calculate your customer Lifetime Value (LTV) to understand the total revenue a customer is expected to generate over time.
How to Use This App
Step 1: Enter Average Purchase Value
Input the average amount a customer spends in a single transaction.
Step 2: Enter Purchase Frequency
Input how many times a customer makes a purchase in a given period (e.g., per year).
Step 3: Enter Customer Lifespan
Input the average length of time a person remains a customer (in the same period as step 2, e.g., years).
Step 4: Calculate Your LTV
The calculator will instantly show you the total revenue you can expect from an average customer.
About This App
Customer Lifetime Value (LTV or CLV) is a crucial metric that predicts the total net profit a company can expect from a single customer over the entire duration of their relationship. By comparing LTV to Customer Acquisition Cost (CAC), businesses can gauge the long-term profitability and sustainability of their customer acquisition strategies. A healthy business model typically has an LTV significantly higher than its CAC.