Lifetime Value (LTV) Calculator

Curious about how much a single customer is worth over the long run? Our LTV Calculator helps you estimate the total revenue a customer might generate before they churn or stop buying. Simply plug in your average order value, purchase frequency, and typical customer lifespan to see real-time insights into your most valuable revenue streams.

How to use this calculator

  • 1. Enter your average order value (AOV)
  • 2. Add your purchase frequency (e.g., 12 orders per year)
  • 3. Input the typical customer lifespan (in years)
  • 4. Click “Calculate” to see the total revenue a single customer generates over their lifetime

Example Calculation

Suppose your average order value is $50, and each customer typically buys 12 times a year. They remain active for about 2 years.

  • Annual Spend: $50 × 12 = $600
  • Lifetime Value (LTV): $600 × 2 years = $1,200

This means each new customer can generate $1,200in revenue over their relationship with your business—valuable insight for making informed marketing decisions.

Frequently Asked Questions

How accurate is this calculator?

It provides estimates based on your inputs (AOV, purchase frequency, lifespan). Real-world results may vary, so use this as a guideline rather than a guarantee.

What if my customers have varying purchase frequencies?

Consider using an average. If some buy weekly and others buy monthly, pick a mid-range figure. Refine this number over time with real data.

Does this account for profit margins?

This tool focuses on revenue. For a clearer picture of profit, consider factoring in your cost of goods sold (COGS) and overhead in a separate calculation.