Customer Lifetime Value (LTV) Calculator

Last updated: February 18, 2026

Use this calculator to estimate customer lifetime value from average order value, purchase frequency, and customer lifespan. It helps you set smarter acquisition targets and retention goals.

Calculator

How to Use This Tool

  1. Enter average order value and purchase frequency.
  2. Add average customer lifespan.
  3. Optionally include margin for profit-based LTV.
  4. Use output to compare against CPA and retention budget.

Understanding Customer LTV

LTV helps determine how much you can spend to acquire and retain customers while staying profitable over time.

FAQ

Can I use monthly data instead of yearly?

Yes, as long as your units stay consistent across all inputs.

Is this exact?

It is a planning estimate based on averages.

Why include gross margin?

Margin-adjusted LTV provides a more realistic profitability view.

Should refunds be included?

Yes, use net AOV after refunds for better accuracy.