Growth Metrics

CLTV Forecaster

What is a customer worth? Calculate Lifetime Value to set aggressive, profitable acquisition targets for your business.

Customer Data

Avg Purchase Value ($)

Purchase Frequency (Per Year)

e.g. 12 for monthly subscriptions

Customer Lifespan (Years)

Customer Lifetime Value (LTV)

$1,800

Max Acquisition Cost

$600

Aim to spend less than this to acquire a customer (Based on 3:1 LTV:CAC Ratio).

Lifetime Equity

Customer Lifetime Value (CLTV) represents the total net profit your business expects to earn from a customer over the entire duration of your relationship. It is the North Star metric for long-term scalability.

Retention Power

Increasing retention rates by a mere 5% can increase profits by 25% to 95%, as measured by CLTV yield per cohort.

Unit Economics

The golden ratio is 3:1 (LTV:CAC). If your CLTV is triple your acquisition cost, your growth engine is ready for scale.

Strategic Impact

Understanding your CLTV allows you to outspend competitors on customer acquisition because you know exactly how much you can lose on the first transaction to gain a decade of loyalty.

Foundation Formula

ARPU × Freq × Span

Output

Net Lifetime Value