Customer Lifetime Value (LTV) Calculator
Calculate customer lifetime value from average order value, purchase frequency, and customer lifespan.
Includes LTV to CAC ratio.
Customer Lifetime Value
Customer Lifetime Value (LTV) estimates the total revenue a business can expect from a single customer.
LTV = Average Order Value × Purchase Frequency per Year × Customer Lifespan (years)
LTV:CAC Ratio:
LTV:CAC = LTV / Customer Acquisition Cost
| Ratio | Assessment |
|---|---|
| 1:1 or lower | Losing money on each customer |
| 2:1 | Breaking even after costs |
| 3:1 | Healthy and sustainable |
| 5:1+ | Very profitable, may be under-investing in growth |
Industry benchmarks:
- SaaS: LTV of $1,000–$10,000+
- E-commerce: LTV of $100–$500
- Subscription boxes: LTV of $200–$800