Customer Lifetime Value Calculator

Customer Lifetime Value (LTV) is an important metric for understanding the value of all future profits of a typical customer. Using your LTV strategy wisely, you can maximize your investment in acquiring the right customers, thus maximizing your Return on Investment (ROI), instead of just minimizing your cost.

Learn More About How to Use LTV

Download the free resource guide on LTV which includes an overview of the calculations and uses of Customer Lifetime Value. See how this essential metric can be used to help you optimize strategies to generate the best ROI.

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customer lifetime value
  • Average order/project value or est. annual value.
  • Typical Number of Purchases Per Year
  • What percentage of your average sale is profit?
  • How many years do you typically retain a customer?
  • What percentage of your customers do you typically retain for the typical duration (number of years) that you estimated above?
  • The discount rate can get complicated. Its purpose is to estimate the present value of earnings that you will receive at some point in the future. If you don't know your weighted cost of capital, you can use a range of 9% to 15% as a good estimate.
  • If you know the average costs to acquire a customer, enter it below (COCA).
  • The current lifetime value of each new customer. This is the value of all future profits available for you to reinvest in your business - in today's dollars.
  • Send You The Results?

    You might use the calculator to try different situations, products, customer groups or even channels of acquisition. Get a copy of your results in an email.
  • Give this scenario a name for your reference.