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Toolzum

LTV Calculator

Projects customer lifetime value as average order value × yearly purchase frequency × lifespan in years, with total orders and annual value shown. SaaS founders and e-commerce operators use LTV to determine acquisition budgets and forecast revenue. Numbers never leave your device — every calculation runs locally in your browser.

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How to Use the LTV Calculator

1. Fill the inputs

Enter average order value, yearly frequency, and lifespan in years.

2. Read the LTV

Check the LTV with total orders and annual value.

3. Compare scenarios

Test an edge value (zero, maximum) to sanity-check the math before trusting mid-range answers.

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Frequently Asked Questions

How is LTV calculated?

LTV = average order value × purchase frequency per year × lifespan in years — no margin input. Example: $85 × 4 orders/year × 5 years = $1,700 LTV. Four presets ship with the tool (SaaS Monthly, E-commerce, Subscription Box, Luxury Retail) and runs save to a 10-entry history with CSV export.

What is a good LTV:CAC ratio?

3:1 or higher — $800 LTV supports up to ~$267 CAC. Below 3:1 you're overpaying for growth; above 5:1 you're likely under-spending and growing slower than you could.

Average LTV or cohort LTV?

Average hides everything: enterprise cohorts often show 5× the LTV of self-serve. Segment by plan, channel, and signup month before setting budgets — one blended number misprices every channel.

How does churn feed into LTV?

Lifetime ≈ 1 ÷ monthly churn rate: 5% monthly churn implies ~20 months average life. Cut churn from 5% to 3% and the same $50×80% base jumps from $800 to ~$1,333 LTV.

Where does margin come in?

Use gross margin (revenue minus cost of delivery), not revenue. A $50 plan at 80% margin contributes $40/month, not $50 — forgetting margin overstates LTV by 25% here.

Last updated October 2026