The LTV Calculator is a free, no-signup tool from Vibe Ideas. Calculate Customer Lifetime Value - the total revenue you can expect from a single customer throughout their entire relationship with your business. Formula: LTV = Average Purchase Value x Purchase Frequency x Customer Lifespan.
What does the LTV Calculator do?
Calculate Customer Lifetime Value - the total revenue you can expect from a single customer throughout their entire relationship with your business.
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 does the LTV Calculator work?
The Formula: LTV = Average Purchase Value x Purchase Frequency x Customer Lifespan
- Gather your inputs. Collect the values needed: Average Purchase Value ($), Purchase Frequency (per year), Customer Lifespan (years). Use real numbers from your analytics or finance dashboard when possible.
- Enter the numbers. Type each value into the matching field on the LTV Calculator. The calculator runs entirely in your browser — nothing is stored or sent to a server.
- Read the result and act on it. Knowing your LTV helps you determine how much you can spend to acquire customers (CAC) while remaining profitable. A healthy business typically has an LTV:CAC ratio of 3:1 or higher.
Inputs you'll need
- Average Purchase Value ($)
- 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.
Is the LTV Calculator free?
Yes — the LTV Calculator is 100% free and requires no signup, account, or credit card. Run it as many times as you need while iterating on your startup.
How accurate is the LTV Calculator?
The output reflects the inputs you provide. For directional planning and pitch decks, it is reliable. For board-level financial decisions, treat the result as a starting point and stress-test with alternative scenarios.
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