Devloxify
Devloxify

Devloxify · 110+ Tools

Customer LTV Calculator

Understand the financial impact of your customer relationships over time.

What a customer spends per transaction.

Typical orders per customer annually.

How many years they stay active.

Estimated Lifetime Value

$0.00

This customer will generate roughly $0.00 in gross revenue over their relationship with your brand.

What is Customer Lifetime Value (LTV)?

**Customer Lifetime Value (LTV)**, sometimes called CLV, represents the total revenue a business can reasonably expect from a single customer account throughout the business relationship. It is a vital metric used to determine how much you can afford to spend on acquiring a new customer (CAC).

Why LTV is the "Golden Metric"

Successful companies focus on "Customer Equity." If your LTV is significantly higher than your Customer Acquisition Cost (CAC), your business is scalable and healthy. A typical healthy ratio for SaaS or E-commerce is **3:1 (LTV:CAC)**.

The LTV Formula

Our calculator uses a standard linear model to estimate value:

LTV = Average Order Value × Purchase Frequency × Customer Lifespan

How to Increase LTV

  • Increase Average Order Value (AOV): Use upsells, cross-sells, or bulk-buying incentives.
  • Increase Purchase Frequency: Use email marketing, loyalty programs, and personalized retargeting to bring customers back more often.
  • Increase Lifespan: Focus on customer success, support, and product quality to reduce "churn."

Instruction: Using the LTV Tool

1. Enter your **AOV** (the average dollar amount spent per order).
2. Enter the **Purchase Frequency** (how many times a customer buys from you in a typical year).
3. Enter the **Lifespan** (the average number of years a customer stays loyal to your brand before leaving).