Customer Lifetime Value Calculator
Estimate customer lifetime revenue and margin-adjusted value.
Formula and assumptions
Estimate · Lifetime revenue = Average order value × Purchases per period × Lifespan in periods. Margin-adjusted LTV = Average order value × Purchases per period × Lifespan in periods × Gross margin (%) ÷ 100. LTV to CAC = ratio(Average order value × Purchases per period × Lifespan in periods × Gross margin (%) ÷ 100,CAC).
Frequency and lifespan must use the same period. This simple model excludes discounting and changing retention.
This tool processes inputs in your browser. Calculator values are not stored or sent by this plugin.
Further reading: Digital Marketing Services: Elevating Your Brand and Driving Sales in the Online Era
Related tools: Marketing ROI Calculator · ROAS Calculator
Page editor: Usman Arshad · Last edited: November 3, 2026
How to use this tool
Choose the relevant mode, enter Average order value and complete the labelled fields. Use Calculate to review your result.
Worked example
Average order value = 50, Purchases per period = 4, Lifespan in periods = 3, Gross margin (%) = 50, CAC (optional) = 50.
Lifetime revenue = 600.00 currency units · Margin-adjusted LTV = 300.00 currency units · LTV to CAC = 6.00×.
These example values are illustrative.
Interpreting the result
Stress-test purchase frequency and lifespan separately. A small overestimate in both can substantially inflate the amount available for acquisition.
Assumptions and limitations
Frequency and lifespan must use the same period. This simple model excludes discounting and changing retention.
Can I use monthly frequency with lifespan in years?
Convert the lifespan to months first so the periods match.