Estimate the potential lifetime value of a customer based on how much they spend and how often they purchase. Use this calculator to understand customer value and support smarter acquisition, retention, pricing, and growth decisions.
What Is Customer Lifetime Value?
Customer Lifetime Value (LTV) estimates the total value a customer may generate over the course of the customer relationship. Use the calculator below to estimate customer value based on average purchase value and expected purchases.
How to Use Your LTV Estimate
Your estimated Customer Lifetime Value gives you a simple starting point for understanding how much value a typical customer may generate over the relationship.
Use the estimate to think through questions such as:
- How much can you reasonably spend to acquire a customer?
- Could improving customer retention increase customer value?
- Would changes in pricing or purchase frequency affect LTV?
- How does customer value compare with your Customer Acquisition Cost (CAC)?
Remember that LTV is an estimate, not a guarantee of future revenue or profit. As your business gathers better customer data, review your assumptions and update the estimate.
What’s Next?
Compare LTV With CAC
Compare your estimated customer value with your Customer Acquisition Cost to better understand your customer economics.
Calculate Your CAC
Use the ThinksmithOS Customer Acquisition Cost Calculator to estimate what it costs to acquire a customer.
Keep Learning
Explore more ThinksmithOS guides, tools, and resources for founders.