Free calculator

LTV Calculator

Customer lifetime value is the gross profit an average customer brings in before they leave. Choose the model that fits your business.

Average revenue per customer / month

Monthly churn rate

Customers lost in a month ÷ customers at the start of that month.

Average order value

Orders per year Years as a customer

Gross margin

CAC (optional)

Customer lifetime value

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How it's calculated

Subscription LTV = Revenue per month × Gross margin ÷ Monthly churn

Ecommerce LTV = Order value × Orders per year × Years × Gross margin

Use gross-margin LTV, not revenue LTV, when comparing against CAC. Revenue LTV overstates what you can afford to spend.
Churn has an outsized effect: halving churn from 4% to 2% doubles subscription LTV.
For ecommerce, measure orders per year and lifespan from past customer cohorts, not from your best customers.