CLTV Calculator
how much is a customer worth? Calculate Lifetime Value to set profitable marketing budgets.
e.g. 12 for monthly subscriptions
Customer Lifetime Value (LTV)
$1,800
$600
Aim to spend less than this to acquire a customer (Based on 3:1 LTV:CAC Ratio).
What is Customer Lifetime Value (CLTV)?
Customer Lifetime Value (CLTV or LTV) is the total revenue a business can expect from a single customer account throughout their relationship. Understanding this metric helps you determine how much you can afford to spend on acquiring new customers (CAC).
How to Calculate CLTV
The basic formula for CLTV is:
CLTV = Average Purchase Value × Purchase Frequency × Customer Lifespan
Our calculator simplifies this by taking your average order value, how often customers buy per year, and how many years they typically stay with you.
The 3:1 LTV to CAC Ratio
A healthy business typically aims for an LTV that is at least 3 times higher than the Customer Acquisition Cost (CAC). If your ratio is 1:1, you are spending too much to get customers. If it's 5:1, you might be underinvesting and missing out on growth.
Press ⌘K