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Customer Lifetime Value

Calculate how much each customer is really worth. See LTV, annual value, profit, and LTV:CAC ratio with visual breakdowns.

Customer lifetime value tells you how much revenue an average customer generates over their entire relationship with your business. This calculator helps you see how retention rate, purchase frequency, and average order value combine to drive long-term profitability.

๐Ÿ“Š Customer Data
Average Purchase Value Per transaction
$
Purchase Frequency Times per year
/year
Average Customer Lifespan In years
years
Profit Margin Optional โ€” for profit-based LTV
%
Customer Acquisition Cost (CAC) Optional
$
๐Ÿ’Ž Lifetime Value
Customer LTV
$780
revenue per customer
Annual Customer Value$260
Lifetime Revenue$780
Lifetime Profit$234
LTV:CAC Ratio15.6x
Net LTV (minus CAC)$730
CACLifetime Profit
CAC
Profit

๐Ÿ“ LTV:CAC Benchmarks

Below 1:1
โš ๏ธ
Losing money per customer
3:1 Ratio
โœ“ Healthy
Industry standard target
5:1+ Ratio
โ˜… Strong
Room to invest more in growth

A healthy LTV:CAC ratio is at least 3:1 โ€” you earn $3 for every $1 spent acquiring a customer. Below 1:1 means you're losing money. Above 5:1 means you could afford to spend more on acquisition. Read the full guide โ†’