Free Tool

Lifetime Value Calculator

To calculate customer LTV, multiply average order value × purchase frequency × customer lifespan. For example, a $75 AOV × 4 purchases/year × 3 years = $900 lifetime value. Use this free customer LTV calculator to add gross margin and CAC, then see your LTV:CAC ratio.

LTV Calculator Enter your data
Average amount spent per transaction.
Average number of purchases per customer per year.
Average number of years a customer stays active.
To see gross-profit-adjusted LTV. Leave at 100% for revenue-based LTV.
To calculate LTV:CAC ratio.

Enter your AOV, purchase frequency, and lifespan to calculate LTV.

Why LTV is the metric that matters most

LTV tells you the maximum you can profitably spend to acquire a customer. Without knowing LTV, you're guessing at ad budgets, retention investments, and growth sustainability. Pair it with your customer acquisition cost to find a healthy LTV:CAC ratio — 3:1 or better.

Formula: LTV = AOV × Purchase Frequency × Customer Lifespan

Three levers to increase LTV

Increase AOV

Bundles, upsells, and free shipping thresholds. Every dollar added to average order value compounds across every purchase for the customer's lifetime.

Increase purchase frequency

Subscription models, replenishment reminders, loyalty programs, and post-purchase email flows all drive repeat purchases.

Extend customer lifespan

Retention is cheaper than acquisition. Win-back campaigns, exceptional support, and product quality keep customers longer.

Want to increase your customer lifetime value?

We help brands optimize the entire customer journey – from first visit to repeat purchase – to maximize LTV.

Embed this calculator on your site

Free for any site. Drops in as an iframe — no JS, no signup, attribution back to the source page.

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  Calculator by <a href="https://www.acceleroi.com/tools/ltv-calculator" target="_blank" rel="noopener">acceleroi</a>
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