Customer Lifetime Value Calculator
Know what each customer is really worth
Customer Data
For calculating profit-based LTV
Lifetime Value Analysis
Enter customer data to calculate LTV
When To Use This Calculator
Setting Ad Budgets
If LTV is $150, you can afford up to $50 CAC and still have 3:1 ratio. This tells you exactly how aggressive you can be with acquisition.
Retention Investment
LTV shows the value of keeping customers. If increasing lifespan from 1 to 2 years doubles LTV, that email marketing investment makes sense.
Customer Segmentation
Calculate LTV by segment. VIP customers with $500 LTV deserve different treatment than one-time buyers with $40 LTV.
Business Valuation
Total customer base × average LTV gives you a rough business value. 5000 customers × $120 LTV = $600K in future revenue.
Upsell Strategy
See how increasing AOV by $10 impacts LTV. If it adds $25 to LTV, that upsell funnel is worth building.
Channel Comparison
Facebook customers might have $80 LTV while Google customers have $120. Higher CAC for Google might still be worth it.
Frequently Asked Questions
What's the difference between LTV and CLV?
Nothing - they're the same thing. LTV (Lifetime Value) and CLV (Customer Lifetime Value) are used interchangeably. Some people also say CLTV. All mean the total value a customer brings over their relationship with your business.
Should I use revenue-based or profit-based LTV?
Profit-based is more accurate for decision-making. Revenue LTV of $200 with 30% margin = $60 profit LTV. You can only afford $60 CAC to break even, not $200. Use profit LTV for budgeting.
How do I find my customer lifespan if I'm new?
Start with industry averages: most dropshipping stores see 1-2 year customer lifespans. Track your actual data monthly. After 6 months, you'll have enough data to calculate your real number.
Why is my LTV so low compared to benchmarks?
Common reasons: (1) Low repeat purchase rate - most dropshipping is one-and-done, (2) Low AOV products, (3) Poor customer experience leading to no returns. Focus on email marketing and product quality to improve.
How often should I recalculate LTV?
Quarterly at minimum. Monthly if you're actively working on retention. LTV changes as your product mix, customer base, and marketing evolve. Don't set it once and forget it.
Can LTV be negative?
Technically no - LTV is always positive (it's revenue). But if CAC exceeds LTV, you're losing money on each customer. That's effectively "negative value" from an investment perspective.
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