Customer Lifetime Value Calculator
Lifetime value tells you what a customer is actually worth over the whole relationship, not just their first purchase - and it’s the number that makes an acquisition cost look reasonable or reckless. This calculator takes average monthly revenue per customer, expected lifespan in months, and your gross margin to produce both a revenue-based and profit-based LTV. Add your CAC and it calculates your LTV:CAC ratio automatically, flagging whether you’re above or below the commonly cited 3:1 healthy benchmark. Built to pair directly with the Customer Acquisition Cost calculator.
Enter average revenue per customer, lifespan, and margin to get lifetime value - and your LTV:CAC ratio if you know your acquisition cost.
Frequently Asked Questions
How do you calculate customer lifetime value?
Multiply average revenue per customer per month by their average lifespan in months to get revenue-based LTV. Multiply that by your gross margin percentage to get a more accurate profit-based LTV, which is what this calculator highlights as the primary result.
What is a good LTV:CAC ratio?
3:1 is the most commonly cited healthy benchmark - meaning a customer is worth at least three times what it cost to acquire them. Below that, acquisition may not be sustainable; well above 5:1 can sometimes signal underinvestment in growth.
Should I use revenue or profit for LTV?
Profit-based LTV (which factors in gross margin) is the more honest number for decisions like acquisition spend, since it reflects what you actually keep, not just what a customer pays you.
All tools are provided for estimation purposes only and do not constitute financial, legal, or compensation advice. Always confirm figures against your company's official comp plan and pricing policy.
sales math, done in the browser.