Customer LTV Calculator
Acquiring a customer costs real money. See what each one is worth over their lifetime — and whether your acquisition cost is justified by the 3x LTV:CAC rule.
This calculator provides estimates for educational use only. It is not tax, legal, or financial advice. Figures are based on current IRS rules — verify against IRS.gov or consult a licensed professional. See our full disclaimer.
Customer Inputs
Customer Lifetime Value
* LTV = AOV × frequency × lifespan × margin%. The 3x LTV:CAC rule is a general acquisition benchmark. Educational reference, not advice.
What This Calculator Tells You
Customer LTV
Total gross profit one customer generates over their lifespan.
LTV:CAC Ratio
The acquisition sustainability check (target 3x).
Annual Gross Profit
Per-customer profit per year.
Retention Lens
Longer lifespan and higher margin multiply LTV fast.
Authoritative References
- General LTV and 3x LTV:CAC acquisition benchmarks (retrieved 2026-08-13), consistent with our type-specific retention ranges (e.g., studio 90-93% monthly retention).
- U.S. SBA — Assess Your Business.
Estimates only. From your inputs; not financial advice.
Customer LTV FAQs
Lifetime value = average order value × purchases per year × customer lifespan × gross margin %. It is what one customer is worth over their whole relationship with you — the number that should justify what you spend to acquire them.
About 3x or higher is the sustainable acquisition benchmark. Below 1x you lose money on every new customer; between 1x and 3x you are likely overpaying to grow.
Repeat customers are the profit engine — acquisition cost (ads, promotions, location) is real. A loyal regular with a 3-year lifespan and 60% margin is worth far more than the one-time walk-in.