LTV Calculator
Calculate Customer Lifetime Value and your LTV:CAC ratio. Understand how much each customer is worth to your business.
How to Calculate LTV
Enter Purchase Data
Input your average purchase value and how often customers buy per year.
Set Customer Lifespan
Estimate how many years a typical customer stays active with your business.
Get LTV & Ratio
See your LTV, annual customer value, and LTV:CAC ratio with actionable insights.
Frequently Asked Questions
What is Customer Lifetime Value (LTV)?
Customer Lifetime Value (LTV or CLV) is the total revenue a business can expect from a single customer account over the entire duration of their relationship. It's calculated as: Average Purchase Value × Purchase Frequency × Customer Lifespan. Understanding LTV helps you make informed decisions about marketing spend and customer retention.
What is a good LTV:CAC ratio?
The ideal LTV:CAC ratio is 3:1 — meaning each customer generates 3x what you spend to acquire them. A ratio below 1:1 means you're losing money on every customer. Between 1:1 and 3:1 means there's room for improvement. Above 5:1 may indicate you're under-investing in growth and could scale faster.
How can I increase my LTV?
To increase LTV: (1) improve product quality and customer experience to boost retention, (2) implement upselling and cross-selling strategies, (3) create loyalty programs, (4) increase purchase frequency through email marketing and retargeting, and (5) raise prices if value supports it. Even small improvements in retention can dramatically increase LTV.
What's the difference between LTV and CLV?
LTV (Lifetime Value) and CLV (Customer Lifetime Value) are typically used interchangeably. Both refer to the predicted total revenue from a customer over the entire relationship. Some analysts use CLV for the predictive model and LTV for the historical calculation, but in practice they mean the same thing.
How often should I recalculate LTV?
Recalculate LTV at least quarterly, or monthly if you're actively optimizing. Key triggers for recalculation: pricing changes, new product launches, changes in customer behavior, shifts in acquisition channels, or seasonal variations. Track LTV by cohort (sign-up month) to see if newer customers are more or less valuable than older ones.
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