LTV Calculator
Estimate customer lifetime value using simple, e-commerce, or discounted models. Includes LTV:CAC ratio benchmarks.
Results
Customer lifetime value (LTV)
$2,376
Gross-margin-adjusted LTV
$1,663
Revenue/customer (monthly)
$99
Revenue/customer (annual)
$1,188
LTV:CAC ratio
3.3:1
Benchmark: below 3:1 = red, 3:1–5:1 = green, above 5:1 = yellow.
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The LTV calculator estimates how much total revenue a customer will generate over their entire relationship with your business. Customer lifetime value is one of the most important metrics for SaaS companies, e-commerce stores, and any subscription business because it tells you how much you can afford to spend acquiring a customer while staying profitable. This tool supports three calculation methods: a simple model based on average revenue and lifespan, an e-commerce model using order value and purchase frequency, and a discounted cash flow model for SaaS businesses that accounts for churn and time value of money. If you know your customer acquisition cost, the calculator also shows your LTV:CAC ratio — the benchmark most investors use to evaluate unit economics.
How to calculate LTV
Simple: LTV = Average Monthly Revenue × Customer Lifespan × Gross Margin E-commerce: LTV = Average Order Value × Purchase Frequency × Customer Lifespan × Gross Margin Discounted: LTV = (Monthly Revenue × Gross Margin) ÷ (Churn Rate + Discount Rate) Example: $99/mo × 24 months × 70% margin = ~$1,663 LTV. With $500 CAC, LTV:CAC = 3.3:1 (healthy).
FAQ
What is a good LTV:CAC ratio?expand_more
What's the difference between LTV and CLV?expand_more
How do I improve LTV?expand_more
Should I use simple or discounted LTV?expand_more
What LTV:CAC ratio do investors want to see?expand_more
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