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LTV Calculator

Customer Lifetime Value Calculator

Enter your numbers to calculate customer LTV (CLV), your LTV:CAC ratio, and the maximum you can afford to spend acquiring a customer.

Average purchase value

Average amount a customer spends per order or sale

$
Purchases per year

How many times an average customer buys per year

Customer lifespan (years)

How long an average customer keeps buying from you

Gross margin

Profit left after the cost of delivering your product

%
Customer acquisition cost (CAC)

Average spend to acquire one customer (optional)

$
Customer LTV
$1,008
Lifetime revenue
$1,440
Annual value / customer
$480
Lifetime purchases
12
LTV : CAC ratio
12.6:1
Max sustainable CAC
$336
CAC payback
0.2 yr
Health
Healthy

Understanding lifetime value

How LTV is calculated

Customer lifetime value is the north-star metric for any business that wants to grow profitably. It tells you, in one number, how much an average customer is worth - which sets the ceiling on what you can spend to win the next one.

Formula
LTV = Avg Purchase x Purchases/yr x Lifespan x Margin

Example: $120 x 4/yr x 3 yrs x 70% = $1,008 customer LTV.

The 3 levers that move LTV

01
Raise average order value

Upsells, bundles and premium tiers lift how much each customer spends per purchase - the fastest lever because it needs no new traffic.

02
Increase purchase frequency

Bring customers back more often with follow-up sequences, win-back campaigns and timely reminders across DM, SMS and email.

03
Extend customer lifespan

Better onboarding and proactive support keep customers longer. Each extra year of lifespan compounds straight into LTV.

Frequently Asked Questions

Grow lifetime value on autopilot

Inflowave lifts all three LTV levers at once - AI upsell prompts, automated follow-up across DM, SMS and email, and a CRM that keeps customers buying longer.

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