Lifetime Value Calculator
Estimate how much an average customer is worth over their whole lifespan.
Avg customer lifespan: 1.7 years
LTV = monthly revenue × margin ÷ churn. Lower your churn and this number climbs fast.
What is Lifetime Value?
Customer lifetime value (LTV, sometimes CLV) estimates the total gross profit you can expect from an average customer before they churn. It anchors how much you can afford to spend acquiring each customer.
How to read your result
- Using gross margin instead of raw revenue gives you a true, profit-based LTV.
- Average lifespan is 1 ÷ churn rate — 5% monthly churn implies about a 20-month lifespan.
- Lowering churn raises LTV faster than raising price does.
- Pair LTV with CAC: a healthy business keeps LTV at least 3× its acquisition cost.
Frequently asked questions
Multiply average monthly revenue per customer by your gross margin, then divide by your monthly churn rate. The result is the expected lifetime gross profit per customer.
They're the same metric — LTV (lifetime value) and CLV (customer lifetime value) are used interchangeably.
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