Lifetime Value
Enter your metrics and click Calculate to see your customer lifetime value
Understanding LTV
What is Customer Lifetime Value?
LTV is the total revenue you can expect from a single customer over the entire duration of your relationship. Formula: LTV = Average Purchase Value x Purchase Frequency x Customer Lifespan. It's the most important metric for determining how much you can afford to spend acquiring customers.
Industry Benchmarks
Average LTV by industry: SaaS $1,000-$50,000+, E-commerce $150-$600, Subscription Boxes $200-$500, Financial Services $2,000-$10,000, Insurance $3,000-$15,000. SaaS and subscription businesses typically have the highest LTV due to recurring revenue.
Common Questions
LTV vs CLV — what's the difference?
They're the same metric. LTV (Lifetime Value) and CLV (Customer Lifetime Value) are used interchangeably. Some companies use CLTV. All refer to total expected revenue from a customer.
How do I increase my LTV?
Increase purchase frequency through email marketing and loyalty programs. Raise average order value with upsells and bundles. Extend customer lifespan by reducing churn with better onboarding, support, and product experience.
Should I use revenue-based or profit-based LTV?
For marketing budget decisions, use profit-based LTV (with margin factored in) — it tells you the actual profit each customer generates. Revenue-based LTV is useful for valuation and growth metrics. This calculator supports both.
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