Customer Lifetime Value Calculator

There is no single lifetime value formula, so this tool offers three and names the one it used on every result. Choose the subscription model and give revenue per period, gross margin and churn; the fixed horizon version to count only a set number of months; or the retail formula of order value, frequency and lifespan. Adding an acquisition cost gives the LTV to CAC ratio and the payback period. Churn and gross margin drive the whole answer, and both are figures you estimate yourself, so the subscription model also shows what a tenth less churn would be worth.

Calculator Type

The contractual model: revenue per period, gross margin and churn, carried forward for as long as the customer survives.

Revenue per Customer per Period ($) *

ARPU. Net of discounts, before cost of service.

Gross Margin (%) *

Revenue less the cost of serving that customer. Not net margin.

Churn per Period (%) *

Share of customers who leave in one period. This figure moves the answer more than anything else on the form.

Period Length

Customer Acquisition Cost ($, optional)

Annual Discount Rate (%, optional)

Leave at zero for the undiscounted figure most teams quote.

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