Financial Utility Tool

Lifetime Value (LTV) Calculator

Calculate the total revenue expected from a customer over their relationship with your business, including profit margin analysis.

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Estimate total revenue and profit generated from a customer over time.

Average Revenue per User (ARPU) ($)

Purchase Frequency (per year)

Customer Lifespan (years)

Profit Margin (%)

Results

Enter values to calculate lifetime value.

Quick Guide

Use this calculator to understand how much a customer is worth over their lifetime, helping you make informed decisions about customer acquisition, pricing, and retention strategies.

How It Calculates

Lifetime Value (Revenue) = Average Revenue per User × Purchase Frequency × Customer Lifespan

Lifetime Value (Profit) = Lifetime Value (Revenue) × Profit Margin

What To Enter

Average Revenue per User (ARPU)
The average amount of revenue generated from each customer.
Purchase Frequency (per year)
How many times per year the customer makes a purchase.
Customer Lifespan (years)
The average number of years a customer stays with your business.
Profit Margin (%)
The percentage of revenue that becomes profit.

How To Use The Result

Higher LTV indicates more valuable customers and better long-term profitability.
Compare LTV with Customer Acquisition Cost (CAC) to ensure profitable customer acquisition.
Focus on strategies to increase retention period and average revenue to boost LTV.
Profit margin shows the percentage of revenue that becomes profit.