Back to Calculators

LTV (Lifetime Value) Solver

Calculated Result
LTV (Lifetime Value) = aov * frequency * lifespan
--
Target Logic: LTV (Lifetime Value)
👇Select what to solve for, then enter your known values in the fields below
$
Awaiting sufficient data parameters to solve...

What is LTV (Lifetime Value)?

LTV (Lifetime Value) predicts the total revenue a single customer will generate over their entire relationship with your brand. It's the single most important input for deciding how much you can afford to spend on customer acquisition.

Worked Example

A subscription service has an AOV of $30/month, customers purchase on average 1× per month, and the average customer stays 24 months. LTV = $30 × 1 × 24 = $720. With a $720 LTV, a $150 CAC gives a comfortable 4.8× LTV:CAC ratio.

Expert Insights

How do I improve my LTV (Lifetime Value)?

Improving LTV (Lifetime Value) requires a dual focus on quality and efficiency. For ECOMMERCE metrics, we recommend auditing your top-performing segments and re-allocating budget from underperforming areas to those with higher baseline LTV (Lifetime Value) potential.

Is LTV (Lifetime Value) a primary KPI?

While LTV (Lifetime Value) is a critical indicator of regional performance, it should always be viewed alongside downstream metrics like ROI to ensure volume isn't coming at the expense of profitability.

Tools to Help Measure LTV (Lifetime Value)