What is the LTV Calculator?
The ltv calculator is a free online tool that helps you work out ltv quickly and accurately. It uses the standard formula LTV = average value x purchase frequency x lifespan and shows the result instantly as you type, along with a full breakdown so you can see exactly how the answer was reached.
How to use this calculator
- Enter average purchase value.
- Enter yearly purchase frequency.
- Enter the customer lifespan.
- See LTV.
Formula used
LTV = average value x purchase frequency x lifespanExplanation of each input
- Average purchase value โ the average purchase value used in the calculation.
- Purchases per year โ the purchases per year used in the calculation.
- Customer lifespan (years) โ the customer lifespan used in the calculation.
Understanding your result
- Customer lifetime value โ the calculated customer lifetime value.
Step-by-step calculation
For the example values 1000 x 4 x 3:
- Apply the formula:
LTV = average value x purchase frequency x lifespan - Substitute the values: multiply
- Result: 12000
Worked example
| Inputs | 1000 x 4 x 3 |
|---|---|
| Working | multiply |
| Result | 12000 |
Benefits and practical uses
This calculator saves you time and reduces errors when you need ltv. It is useful for students, professionals and anyone who wants a fast, reliable answer without manual calculation. Results update instantly, work in your browser and can be copied or shared in one click.
Assumptions and limitations
- Constant spending behaviour; excludes margin and discount rate.
Frequently asked questions
Why does LTV matter?
It tells you how much you can spend to acquire a customer profitably.
Disclaimer: Results are provided for general information. Please verify important figures independently.