FREE BUSINESS TOOL · LTV, PROFIT AND LTV:CAC RATIO
LTV Calculator – Free Customer Lifetime Value Calculator
Work out how much a customer is worth over the whole relationship: revenue, profit and the most you can afford to spend to win one. Add your cost per customer to see your LTV to CAC ratio.
Customer lifetime value (revenue)–
Formula: LTV = Order value × Purchases per year × Years. Lifetime profit = LTV × margin.
What Is Customer Lifetime Value (LTV)?
LTV is the total a customer spends with you over the whole time they stay. It tells you how much you can afford to spend on ads to win one customer.
| Business | Order value | Orders / year | Years | LTV |
|---|---|---|---|---|
| Bakery | ₹800 | 4 | 3 | ₹9,600 |
| Salon | ₹1,200 | 6 | 2 | ₹14,400 |
| Training institute | ₹30,000 | 1 | 1.5 | ₹45,000 |
Example numbers only. Use your own sales data for real decisions.
How to Use LTV in Marketing
Set your ad budget
Know the most you can pay for a customer. Compare with your real cost using our CPA calculator.
Aim for 3:1
A common rule: each customer should bring at least 3 times what they cost to win.
Invest in repeat buyers
WhatsApp reminders, loyalty offers and emails cost little and raise LTV.
Raise order value
Bundles, add-ons and free delivery above a minimum all lift average order value.
Check your margins
LTV in revenue is not profit. Work out real margins with our profit margin calculator.
Ask for reviews
Happy long-term customers bring new ones. Get reviews with our Google review link generator.
Win Customers Who Come Back
High LTV comes from retention: email, WhatsApp and great service. Learn retention and growth marketing hands-on in our classes in Coimbatore.
Frequently Asked Questions
How do you calculate customer lifetime value?
LTV = average order value × purchases per year × years a customer stays. Multiply by your gross margin to get lifetime profit.
What is a good LTV to CAC ratio?
Many businesses aim for 3:1 or higher, meaning a customer brings at least three times the profit it cost to win them. Below 1:1 you lose money on each customer.
What is CAC?
Customer acquisition cost: your total marketing and sales spend divided by the number of new customers it brought.
Should I use revenue LTV or profit LTV?
Use profit LTV for ad decisions. Revenue LTV looks bigger but ignores product and service costs.
How can I increase LTV?
Get customers to buy more often, spend more per order, or stay longer. Follow-up messages, bundles and great service all help.
Is this LTV calculator free?
Yes. It is free, needs no login, and works in your browser.
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