CLV / LTV Calculator

Measure the total expected net profit directly driven by a single customer throughout their entire relationship with your brand.

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Net LTV Profit (Gross)
$0
Annual Revenue (ARPU)
$0
Total Lifetime Revenue
$0
Formula / Calculation
LTV Profit = (AOV × Frequency × Lifespan) × Gross Margin %

Customer Lifetime Value (LTV)

While knowing how much a customer spends on their first visit is nice, understanding Customer Lifetime Value (CLV or LTV) is the holy grail. It lets you confidently spend massive amounts of money on advertising on day one, fully knowing that the customer’s repeat purchases in Year 2 and Year 3 will yield staggering passive profitability.

LTV Components

Average Order Value (AOV)

The average cart size. Easily boosted via aggressive one-click upsells, free shipping thresholds, and bundled complementary products.

Purchase Frequency

How often the customer successfully checks out in a given time period. Increased heavily through email marketing flows and subscription models (Subscribe & Save).

Profit vs Revenue LTV

Novice businesses calculate LTV off gross revenue. Strategic businesses calculate LTV specifically using gross profit margin to ensure they have the real capital to pay off Customer Acquisition Costs.

Strategies to Explode Customer LTV

Implement VIP Loyalty and Rewards Programs to structurally discourage shoppers from buying from cheaper competitors.
Design post-purchase email sequences (30, 60, and 90 days out) promoting replenishment products.
Ensure flawless customer service on the first order. An awful unboxing experience permanently caps LTV at a single purchase.

Frequently Asked Questions

How do I calculate customer lifespan?
It is the inverse of your churn rate (1 / Churn Rate). For example, if 20% of your customer base abandons your brand entirely each year, the average lifespan is 5 years.