Customer Lifetime Value: $100 Order, 4x Per Year, 5 Years
A customer buying $100 worth of goods quarterly for 5 years generates $2,000 in revenue; apply your gross margin to get true LTV.
How to use this tool
- Enter average order value, purchase frequency (per year), average customer lifespan and gross margin in the fields above.
- Results update instantly as you type — or click Calculate.
- Read your ltv (revenue) and the full breakdown beneath it.
Quarterly purchases of $100 over five years add up — use this calculator to find the lifetime revenue and margin-adjusted LTV of that customer.
Frequently asked questions
- What is the difference between revenue LTV and profit LTV?
- Revenue LTV is total expected revenue per customer. Profit LTV (also called CLV) multiplies by gross margin to show how much you actually keep after direct costs. Use profit LTV when comparing against CAC.
- How do I estimate customer lifespan?
- Lifespan ≈ 1 ÷ annual churn rate. If your annual churn is 25%, average lifespan is 4 years. For subscription businesses, use the churn-rate calculator to find this number first.