Estimate long-term customer profit and compare with CAC health rule.
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The Customer Lifetime Value Calculator estimates the total profit a single customer generates over their entire relationship with your business. By factoring in revenue, margins, and retention, you can make smarter decisions about how much to invest in acquisition and which customer segments deserve the most attention.
Customer lifetime value, or LTV, projects the total gross profit a business can expect from one customer account throughout the relationship. It multiplies the average revenue per period by the gross margin percentage and the average number of periods a customer stays active. When compared against your customer acquisition cost, LTV reveals whether your growth model is sustainable. A healthy LTV-to-CAC ratio of 3:1 or higher is the widely accepted benchmark. This free, browser-based calculator delivers these insights instantly.
Enter the average revenue each customer generates per period, your gross margin percentage, and the average customer lifespan in matching period units. Optionally add your CAC to see the LTV-to-CAC ratio. Click Calculate and the tool displays your estimated lifetime value along with ratio analysis if CAC is provided. Everything runs in your browser with no data uploaded and no account needed. Experiment with different retention or margin scenarios to see how small improvements compound over time.