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LTV Calculator

Calculate Customer Lifetime Value (LTV) and compare it to your acquisition cost.

Lifetime Value
Comparison

Enter your CAC to see the LTV:CAC ratio.

Enter your numbers and select Calculate to see results.

About This Calculator

Customer Lifetime Value (LTV) estimates the total revenue a business can expect from a single customer over the entire relationship. This calculator computes LTV from average purchase value, purchase frequency, and average customer lifespan, and optionally compares it to your Customer Acquisition Cost (CAC).

How This Is Calculated

LTV = Average Purchase Value × Purchase Frequency × Customer Lifespan

A $60 average purchase, 4 times/year, over a 3-year customer lifespan gives an LTV of $720.

Assumptions

  • Uses a simplified LTV model based on historical averages; does not discount future revenue to present value or account for changing purchase behavior over time.
  • A 3x or higher LTV:CAC ratio is a commonly cited healthy benchmark, though this varies by business model and industry.

Frequently Asked Questions

It helps determine how much you can afford to spend acquiring a new customer while remaining profitable — comparing LTV to CAC (Customer Acquisition Cost) is a core metric for evaluating marketing efficiency and business sustainability.

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Last updated January 15, 2026. Results are estimates for informational purposes only — read our disclaimer.