Customer Lifetime Value (LTV) Calculator
Estimate customer lifetime value, the LTV to customer acquisition cost (CAC) ratio and how long it takes to earn back acquisition spend.
Your numbers
- LTV : CAC
- 5.05×
- CAC payback
- 8 months
- Profit per customer
- $344
- LTV
- CAC
- Profit
How the customer lifetime value (ltv) calculator works
LTV = average order value × purchases per year × margin × customer lifespan. A healthy LTV:CAC ratio is 3:1 or better.
Example
Using the default inputs (Average order value: $65.00; Purchases per year: 4; Customer lifespan (years): 3; Gross margin: 55%; Acquisition cost: $85.00), the calculator returns customer lifetime value of $429. Change any field above to see your own result and charts update instantly.
Good for these goals
Frequently asked questions
What is a good LTV:CAC?
Three to one is a common benchmark; below one means you lose money on each customer.
How do I raise LTV?
Increase retention, upsell, raise prices or reduce churn.
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Estimates are for educational purposes only and are not financial, tax or legal advice. Results depend on your inputs and simplified assumptions; tax figures reflect 2026 federal rules and may differ from your situation. See our disclaimer. © 2026 FinanzCalc.