What is this tool?
Calculate Customer Lifetime Value - the total revenue you can expect from a single customer throughout their entire relationship with your business.
Our free LTV Calculator is designed to help founders and vibe coders make data-driven decisions. By understanding this metric, you can better architect your business model and ensure long-term sustainability.
How It Works
The Formula: LTV = Average Purchase Value x Purchase Frequency x Customer Lifespan
To use this tool, you'll need:
- Average Purchase Value ($)
- Purchase Frequency (per year)
- Customer Lifespan (years)
Why It Matters for Your Startup
Knowing your LTV helps you determine how much you can spend to acquire customers (CAC) while remaining profitable. A healthy business typically has an LTV:CAC ratio of 3:1 or higher.
Frequently Asked Questions
What is the LTV Calculator?
Calculate Customer Lifetime Value - the total revenue you can expect from a single customer throughout their entire relationship with your business.
Why should I use the LTV Calculator?
Knowing your LTV helps you determine how much you can spend to acquire customers (CAC) while remaining profitable. A healthy business typically has an LTV:CAC ratio of 3:1 or higher.
How is the LTV Calculator calculated?
The LTV Calculator is calculated using the following formula: LTV = Average Purchase Value x Purchase Frequency x Customer Lifespan.