How this calculator works
Enter average revenue per customer, gross margin and estimated lifetime. The calculator estimates the gross profit value generated by an average customer.
Formula
LTV ≈ Average revenue per period × Gross margin × Customer lifetime
When to use it
Compare LTV with CAC to understand whether acquisition economics have enough room to work.
Important
This calculator is for estimation and planning. Actual financial outcomes can differ because of taxes, fees, timing, market conditions, lender terms and other factors.