Customer Lifetime Value (CLTV
Customer Lifetime Value (CLTV or LTV) measures the net gross profit a business expects to earn from a single customer relationship over its entire duration.
⚙ Input Values
📊 Results
Embed on Your Website
Copy and paste this code into your website.
<iframe src="https://calcusolve.com/calculator/cltv-calculator-customer-lifetime-value?embed=true" width="100%" height="600" frameborder="0" loading="lazy" title="Customer Lifetime Value (CLTV"></iframe> ⚖ Scenario Comparison
What This Means For You
Saved Calculations
No saved calculations yet.
Click "Save" to bookmark your current result.
📐 Formula
💡 Practical Example
AOV = $100, 4 purchases/year, 70% gross margin, 3-year lifespan, $150 CAC: Annual Profit = $100 × 4 × 0.70 = $280/year. CLTV = $280 × 3 = $840.00. CLTV:CAC Ratio = $840 / $150 = 5.60 : 1 (HEALTHY UNIT ECONOMICS, 6.4 months CAC payback).
📖 About Customer Lifetime Value (CLTV
Customer Lifetime Value (CLTV or LTV) measures the net gross profit a business expects to earn from a single customer relationship over its entire duration. A target CLTV:CAC ratio of 3:1 or higher indicates strong unit economics.
To use the Customer Lifetime Value (CLTV) & CAC Ratio Calculator, enter your Average Order / Purchase Value (AOV), Annual Purchase Frequency per Customer, Gross Profit Margin and other values. The calculator instantly computes Customer Lifetime Value (CLTV), CLTV to CAC Ratio and more. Results update in real time as you change any input — no submit button needed.
How to Use This Calculator
Enter your Average Order / Purchase Value (AOV) (e.g. 100 in ), Annual Purchase Frequency per Customer (e.g. 4 in orders/yr), Gross Profit Margin (e.g. 70 in %), Average Customer Relationship Lifespan (e.g. 3 in years), and Customer Acquisition Cost (CAC) (e.g. 150 in ). Results update instantly as you type — adjust any value to compare scenarios.
The Formula
Annual Profit per Customer = Average Order Value × Annual Purchase Frequency × Gross Margin %
CLTV = Annual Profit per Customer × Customer Lifespan (Years)
CLTV : CAC Ratio = Customer Lifetime Value ÷ Customer Acquisition Cost
Worked Example
AOV = 100, 4 purchases/year, 70% gross margin, 3-year lifespan, 150 CAC:
Annual Profit = 100 × 4 × 0.70 = 280/year.
CLTV = 280 × 3 = 840.
00.
CLTV:CAC Ratio = 840 / 150 = 5.60 : 1 (HEALTHY UNIT ECONOMICS, 6.4 months CAC payback).
Understanding Your Result
Marketing metrics are most useful as trends over time rather than isolated snapshots. Benchmark your result against your own historical performance first, then against industry averages. Attribution models (last-click vs. multi-touch) can produce dramatically different channel ROI figures — ensure consistent attribution methodology before making channel budget decisions. Statistical significance requires sufficient sample size: most A/B test decisions need a minimum of 1,000 conversions per variant for reliable results.
💡 Methodological Standards & Calculation Accuracy
- All calculations are performed client-side in your browser using verified, standards-compliant mathematical algorithms.
- Results are provided for educational and informational analysis; verify critical applications with certified domain specialists.
- Ensure input values are entered in consistent units matching the selector options to guarantee accurate outputs.
- Periodic recalibration is recommended whenever baseline assumptions, operating parameters, or external conditions change.
Results are for informational and educational purposes only. Always verify critical decisions with a qualified professional.