Free tool
LTV Calculator
See what a customer is really worth over their whole relationship with you, once repeat purchases, gross margin and churn are taken into account.
Monthly subscription = 12. Annual plan = 1.
Optional — from the CAC calculator.
Churn is the share of customers who leave each month. 5% churn means the average customer stays 20 months.
Lifetime value (gross profit)
£858
- Lifetime revenue
- £1,225
- Net of acquisition cost
- £708
Average customer lifespan
25.0 months
Monthly retention
96.0%
Revenue per year
£588.00
Revenue per month
£49.00
LTV : CAC ratio
5.7 : 1
Max sensible spend to acquire
£286
Lifespan is 1 ÷ monthly churn, so small changes in retention move lifetime value a long way. Gross-profit LTV is the number to use when setting acquisition budgets — a rough rule is to spend no more than a third of it winning the customer.
Estimate what a customer is worth across the whole relationship, using average order value, purchase frequency, gross margin and monthly churn. Shows lifetime revenue, gross-profit lifetime value, average customer lifespan and the maximum you can sensibly spend to acquire one.
Keep customers longer, and lifetime value looks after itself
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