Luxury Product LTV: $500 Order, Twice Per Year, 70% Margin
A luxury customer spending $500 twice a year for 5 years generates $5,000 in revenue; at 70% gross margin the LTV is $3,500.
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.
High-ticket, low-frequency buyers can still have an impressive lifetime value — see what a $500 purchase twice a year is worth over a 5-year relationship.
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.