What is the Customer Lifetime Value Calculator?
Estimate customer lifetime value (LTV) and compare it with acquisition cost. Digital marketing runs on unit economics. These calculators turn raw campaign numbers into the metrics that matter — what you pay per result, what each customer is worth and whether your ads are profitable.
How to use the Customer Lifetime Value Calculator
- Enter your average order value, your purchases per year, your customer lifespan, your gross margin and the remaining fields.
- Results update automatically as you type; you can also press Calculate.
- Read the output: lifetime value (profit), lifetime revenue, ltv : cac ratio.
- Use the 📊 chart to see the result visually, then copy or share it.
Formula and method
Worked example
With average order value = $60, purchases per year = 4, customer lifespan = 3 years, gross margin = 50 %, cac = $80, the Customer Lifetime Value Calculator returns lifetime value (profit): $360.00; lifetime revenue: $720.00; ltv : cac ratio: 4.50 : 1.
Tips for better results
- Track LTV:CAC — a ratio of 3:1 or higher is a common healthy benchmark.
- ROAS must exceed 1 ÷ margin to be profitable, not just exceed 1.
- Ad revenue varies widely by niche, country and season — use your own historical RPM when you have it.
⚠️ Revenue estimates depend on your traffic quality, niche and ad network policies; actual earnings will differ.
Frequently asked questions
What does the Customer Lifetime Value Calculator do?
Estimate customer lifetime value (LTV) and compare it with acquisition cost.
How is it calculated?
The Customer Lifetime Value Calculator uses this method: LTV = AOV × Purchases/yr × Years × Margin.
Can you show an example?
With average order value = $60, purchases per year = 4, customer lifespan = 3 years, gross margin = 50 %, cac = $80, the Customer Lifetime Value Calculator returns lifetime value (profit): $360.00; lifetime revenue: $720.00; ltv : cac ratio: 4.50 : 1.
Is the Customer Lifetime Value Calculator accurate?
It uses standard published formulas and is tested against known values, but results are estimates for guidance. Revenue estimates depend on your traffic quality, niche and ad network policies; actual earnings will differ.
Is this tool free and private?
Yes — the Customer Lifetime Value Calculator is completely free with no sign-up, and it runs entirely in your browser, so the values you enter are never uploaded to our servers.
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