LTV Calculator — Customer Lifetime Value
Free LTV calculator. Calculate customer lifetime value to understand long-term revenue per customer.
Formula: Average Purchase Value × Purchase Frequency × Customer Lifespan
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What Is This Calculator?
Customer Lifetime Value (LTV or CLV) estimates the total revenue a business can expect from a single customer over the entire duration of their relationship. Understanding LTV helps businesses determine how much to invest in acquiring and retaining customers.
How to Calculate
To calculate LTV: 1) Find the average purchase value. 2) Determine how often a customer buys per year. 3) Estimate the average customer lifespan in years. 4) Multiply all three. Formula: LTV = Avg Purchase Value × Purchase Frequency × Customer Lifespan.
Examples
Example: Average order is $100, customers buy 4 times per year, and stay for 5 years. LTV = $100 × 4 × 5 = $2,000 per customer.
Recommended Tools
CRM platforms like HubSpot and Salesforce can automatically calculate LTV from your actual customer data.
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