Customer Impact
← All tools
Free calculator

Customer lifetime value calculator (LTV)

Calculate the lifetime value of a customer and your LTV:CAC ratio.

  • The lifetime value (LTV) of a customer
  • Your LTV:CAC ratio when you add your CAC
  • A verdict on whether your growth is healthy
%
Need help with Marketing strategy?

How do you calculate LTV?

A workable B2B formula: average annual revenue per customer times your gross margin times the average customer lifespan in years. At 6,000 euros annual revenue, 70 percent margin and 4 years lifespan, your LTV is 16,800 euros.

Add your CAC too and the calculator shows your LTV:CAC ratio. That ratio is the real health check on your growth.