Finance
Customer Lifetime Value Calculator
Estimate customer value from order size, frequency, margin, and retention.
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Transparent methodology
What the result includes—and what it does not
Built for ecommerce and subscription teams comparing customer economics with acquisition cost.
Calculation method
- 1Revenue LTV = average order value × purchases per year × customer lifespan.
- 2Gross-profit LTV = revenue LTV × gross margin.
- 3Value after acquisition cost = gross-profit LTV − acquisition cost.
Assumptions and limits
- Order value, purchase frequency, lifespan, and margin are treated as stable averages.
- Retention cohorts, discounting, refunds, support, overhead, and time value of money are not modelled.
- Use cohort data rather than optimistic targets when making acquisition decisions.
Worked example
Three-year repeat customer
Input: $80 average order, 4 purchases/year, 3 years, 60% margin, and $80 acquisition cost.
Output: $960 revenue LTV, $576 gross-profit LTV, and $496 after acquisition cost.
How to use it
Three steps. One clear answer.
- 1Enter or paste the values requested by the tool.
- 2Review the input units and choose any relevant options.
- 3Calculate, then copy or download the result you need.
Built for trust
Useful without the friction.
- No registration or paywall before your result.
- Responsive controls for phone, tablet, and desktop.
- Clear assumptions and warnings where estimates have limits.
Frequently asked questions
How does the Customer Lifetime Value Calculator work?
Revenue LTV = average order value × purchases per year × customer lifespan. Gross-profit LTV = revenue LTV × gross margin. Value after acquisition cost = gross-profit LTV − acquisition cost.
What should I check before using the result?
Order value, purchase frequency, lifespan, and margin are treated as stable averages. Retention cohorts, discounting, refunds, support, overhead, and time value of money are not modelled. Use cohort data rather than optimistic targets when making acquisition decisions.
How current is this page?
The methodology and source notes were reviewed on 2026-07-24. Editable rates and inputs should still be checked against the provider or authority linked below.
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