LTV Calculator
Estimate customer lifetime value (LTV) as gross profit from repeat orders or monthly subscriptions.
Use LTV Calculator
Future profit is not discounted; subscriptions assume constant monthly churn and flat monthly revenue per subscriber. Free, no sign-up. Runs in your browser; nothing you enter is uploaded.
How to use it
Estimate gross profit per customer before acquisition costs and fixed overhead, not revenue or net profit.
- Choose Ecommerce for repeat orders or Subscription for monthly payments.
- Enter order value, frequency and years retained, or monthly revenue and churn.
- Enter gross margin after variable costs, excluding acquisition spend.
- Compare LTV with customer acquisition cost before setting a budget.
Formula
Ecommerce LTV = AOV × purchases per year × years retained × gross margin ÷ 100
Subscription LTV = monthly ARPU × gross margin ÷ monthly churn
Expected lifetime in months = 100 ÷ monthly churn
Example
Coffee roaster, Pune, India
Repeat coffee orders yield an estimated ₹31,500 in lifetime gross profit per customer.
- Average order value (AOV)
- ₹3,500
- Orders per customer per year
- 12
- Years retained
- 3
- Gross margin
- 25%
Questions
Which mode should I use?
Use Ecommerce for separate orders and Subscription for recurring payments. Calculate mixed customer groups separately. Currency changes labels, not amounts. Input and output caps are Infinall limits, not industry benchmarks.
How do I calculate gross margin?
Subtract product or service costs, delivery, fees and returns from revenue, then divide by revenue and multiply by 100. Exclude acquisition costs and fixed overhead. LTV is not an acquisition budget.
Why must monthly churn be above zero?
At 0% churn, customers never leave, so there is no finite lifetime estimate. Use measured monthly churn above zero. At 100% churn, LTV is one month of gross profit.
What if I only know annual churn?
Do not divide annual churn by 12. With constant churn, monthly churn (%) = 100 × [1 − (1 − annual churn / 100)^(1/12)]. Use customer churn, not revenue churn, and monthly revenue per subscriber.
Are discounts, refunds and future value included?
Use revenue after discounts and refunds. Include related variable costs in gross margin without counting them twice. Profit earned in year three counts the same as profit earned today.
Why warn about fewer than one lifetime order?
Purchase frequency × retention years gives lifetime orders per customer. Below one, check that frequency is per year and retention is in years; the result is still shown.
Related tools
Turn a product URL into a full ad campaign.
1,000 free credits, no card.