How it is calculated
A common simplified model combines average customer revenue or gross profit with expected customer lifespan.
Finance
Customer Lifetime Value Calculator
Estimate customer lifetime value from revenue and retention inputs. Results are estimates and are calculated locally on your device.
Use this result as a planning estimate, not financial, tax, legal, or professional advice.
How to use this tool
Understand the result before you act on it
Estimate how much gross customer value a typical relationship may generate over its useful lifetime.
Worked example
If a customer contributes $60 per month in gross profit and stays for 24 months, simplified lifetime value is $1,440.
What to do with the number
Use the result as a baseline, test different assumptions, and compare scenarios before changing budgets, staffing, pricing, or processes.
Common questions
Customer Lifetime Value Calculator FAQ
What is customer lifetime value?
Use the calculator with your own business inputs and compare the result over a consistent period. The output is a planning estimate, so validate important decisions against your accounting or operating data.
Should LTV use revenue or gross profit?
Use definitions that stay consistent from one measurement period to the next. Consistency makes the result more useful for comparisons and trend tracking.
How should I use LTV with CAC?
No. The calculator provides an estimate from the values you enter. Real outcomes depend on pricing, operations, customer behavior, data quality, and other business conditions.
Related tools
Continue with tools that answer the next question in this workflow.
Finance
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Calculate monthly recurring revenue from customers and average revenue.
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Convert recurring monthly revenue into annual recurring revenue.
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Measure customer or revenue churn for a period.
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Estimate the units required to cover fixed costs.