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Customer Lifetime Value (LTV) Calculator

Estimate customer lifetime revenue and gross-profit value from order value, purchase frequency, lifespan and margin.

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Calculator inputs

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Your result

Calculated from the values above
check_circle Calculated
Customer lifetime value$12,000,000.00Primary calculated value
Gross-profit LTVSupporting metric
$2,400,000.00
CalculationBased on your current inputs
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How it works

Method, formula and practical notes

Estimate revenue generated during the expected customer relationship and optionally convert it to gross profit.

FormulaRevenue LTV = Average order value × Purchases per period × Customer lifespan. Gross-profit LTV = Revenue LTV × Gross margin.
lightbulb Keep in mind
  • Use the same time unit for purchase frequency and lifespan.
Calculator guide

Customer Lifetime Value (LTV) Calculator

Estimate customer lifetime revenue and gross-profit value from order value, purchase frequency, lifespan and margin.

35finance tools
functions

Formula

Revenue LTV = Average order value × Purchases per period × Customer lifespan. Gross-profit LTV = Revenue LTV × Gross margin.

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How it works

Estimate revenue generated during the expected customer relationship and optionally convert it to gross profit.

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Assumptions & notes

  • Use the same time unit for purchase frequency and lifespan.