Customer Lifetime Value Calculator

Calculate LTV, total revenue, gross profit, and maximum CPA to optimize your marketing spend and customer acquisition strategy

Input Parameters

$

Please enter a value greater than 0

Average amount spent per purchase

/year

Please enter a value greater than 0

Number of purchases per customer per year

years

Please enter a value greater than 0

Average time a customer stays active

%

Please enter a value between 0 and 100

Profit percentage after COGS

LTV Formula
LTV = AOV × Frequency × Lifespan × Margin

Calculated Results

Customer Lifetime Value (LTV) Total gross profit expected from a customer over their entire relationship with your business.
$540.00
Total Revenue per Customer Total sales revenue generated by one customer before costs: AOV × Frequency × Lifespan
$900.00
Gross Profit per Customer Same as LTV. Profit after COGS but before marketing, ops, and other expenses.
$540.00
Recommended Max CPA Based on 33% of LTV rule. Maximum you should spend to acquire a customer to remain profitable.
$178.20

Metric Explanations

Customer Lifetime Value

Predicts the total net profit your business will derive from the entire future relationship with a customer. Use this to determine spend limits and customer segmentation.

Total Revenue per Customer

The gross revenue generated before subtracting costs. Shows the total sales value of retaining a customer for their full lifespan.

Gross Profit per Customer

Revenue minus cost of goods sold. This is your LTV and represents profit available for marketing, operations, and net margins.

Recommended Max CPA

Cost Per Acquisition should stay below 33% of LTV for sustainable growth. The remaining 67% covers operations, profit, and other costs.

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