How much is each customer worth to your business?

This calculator helps you estimate the lifetime value of a customer (LTV). But a single number isn't enough. The real insight comes from comparing your LTV to your Customer Acquisition Cost (CAC).

This two-step process reveals the true profitability of your marketing efforts.

First, calculate your LTV. You’ll need:

• Average Purchase Value – how much a typical customer spends per order
• Purchase Frequency – how often they buy from you each year
• Customer Lifespan – how many years you usually retain a customer
• Profit Margin – to reflect the actual profit retained after costs

Next, compare it to your CAC to see if your marketing is sustainable and profitable.