Customer Lifetime Value (CLTV) Calculator
Estimate the total revenue a single customer generates across their entire relationship with your business.
Calculate Customer Lifetime Value (CLTV)
Customer Lifetime Value (CLTV) Formulas & Reverse Equations
Use these standard and algebraic reverse formulas in spreadsheets, agency decks, or media plans:
Solve for CLTV
CLTV = Average Purchase Value × Purchase Frequency × Customer LifespanSolve for Average Purchase Value
Average Purchase Value = CLTV ÷ (Purchase Frequency × Customer Lifespan)Solve for Customer Lifespan
Customer Lifespan = CLTV ÷ (Average Purchase Value × Purchase Frequency)Understanding Customer Lifetime Value (CLTV)
Customer Lifetime Value (CLTV or LTV) looks beyond the first checkout to quantify what an acquired customer is worth over months or years of repeat purchases. Knowing your CLTV unlocks smarter media buying: brands that bid based on lifetime value rather than first-order revenue can outbid competitors in ad auctions while remaining highly profitable.
When to Use Customer Lifetime Value (CLTV)
Use CLTV to set maximum allowable CAC and CPA targets, model subscription cohort value, and justify retention or loyalty investments.
Industry Benchmarks & Planning Context
Healthy growth businesses typically target a CLTV to CAC ratio of at least 3:1 (each customer generates at least 3x what it cost to acquire them).
Frequently Asked Questions About CLTV
How do you calculate Customer Lifetime Value (CLTV)?
Multiply Average Purchase Value by Average Purchase Frequency Rate (to find annual customer value), and then multiply by Average Customer Lifespan: CLTV = Average Purchase Value × Purchase Frequency × Customer Lifespan.
How is Customer Lifespan related to Churn Rate?
Average Customer Lifespan equals 1 divided by your Churn Rate. For example, if your annual churn rate is 25% (0.25), your average customer lifespan is 1 ÷ 0.25 = 4 years.
What is a good CLTV:CAC ratio?
A 3:1 CLTV:CAC ratio is widely considered the benchmark for sustainable growth. A ratio below 1.5:1 means acquisition costs are eating up margin; a ratio above 5:1 often indicates you are under-investing in customer acquisition and leaving market share on the table.