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What Is Each Customer Worth?

Calculate Customer Lifetime Value (LTV). See how much revenue each customer brings over their entire relationship with your business.

Tool Input

How much does a customer spend per transaction?

How many times does a customer buy per year?

How many years does a customer stay with you?

What is your average profit margin?

Your Result

Frequently Asked Questions

What is Customer Lifetime Value?

LTV is the total revenue you expect from a single customer over their entire relationship with your business. It helps you decide how much to spend acquiring customers.

Why does LTV matter?

If your LTV is higher than your customer acquisition cost, you're profitable. If not, you're losing money on every customer.

How do I increase LTV?

Increase order value, encourage repeat purchases, improve retention, and upsell/cross-sell. A great website helps with all of these.

What is a good LTV:CAC ratio?

A healthy LTV:CAC ratio is 3:1 or higher. This means a customer brings 3x more value than it cost to acquire them.