Ltv Calculator
Calculate the Lifetime Value (LTV) of a customer based on average purchase value, purchase frequency, and customer lifespan.
Published by:
isCalculator Editorial Team
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How to use this tool?
This LTV Calculator computes the Customer Lifetime Value — the total revenue you can expect from a single customer over their entire relationship with your business.
- Enter Average Purchase Value ($) — the typical amount a customer spends per transaction (e.g., $50).
- Enter Purchase Frequency (per year) — how many times the customer buys from you annually (e.g., 4 for quarterly purchases).
- Enter Customer Lifespan (years) — the average number of years a customer remains active (e.g., 5).
- Click "Calculate LTV" — the result appears instantly, showing the total LTV and a breakdown of the formula.
Formula: LTV = Average Purchase Value × Purchase Frequency × Customer Lifespan
All inputs must be non-negative numbers. Use decimals for partial values (e.g., 2.5 years).
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Frequently Asked Questions
LTV stands for Customer Lifetime Value, a metric that estimates the total revenue a business can expect from a single customer account throughout the business relationship.
LTV is calculated by multiplying the average purchase value, purchase frequency, and customer lifespan. The formula is: LTV = Average Purchase Value × Purchase Frequency × Customer Lifespan.
LTV helps businesses understand the long-term value of customers, guiding decisions on marketing spend, customer retention, and sales strategies.
