Daily Calculator Hub
← Back to home

Customer Lifetime Value Calculator

Last updated: October 15, 2026

Estimate gross-margin customer lifetime value and compare it with CAC.

Estimated customer lifetime value

—

  • Annual gross-margin value: —
  • LTV to CAC ratio: —
  • LTV minus CAC: —
On this page

Quick summary: Estimate gross-margin customer lifetime value and compare it with CAC.

Updated October 14, 2026 • Estimated reading time: 4 minutes
Read the complete guide

What this calculator estimates

Estimate gross-margin customer lifetime value and compare it with CAC.

How to use it

Enter Average purchase value ($); Purchases per year; Gross margin (%); Average customer lifespan (years); Customer acquisition cost ($). Select Calculate to update the results.

How the calculation works

Annual gross-profit contribution = average purchase value × purchases per year × gross margin/100. Lifetime gross-profit value multiplies that annual amount by the assumed customer lifespan. Net value subtracts CAC; LTV:CAC divides lifetime value by positive CAC.

Worked example: starting scenario

Example inputs
Average purchase value ($)120
Purchases per year6
Gross margin (%)60
Average customer lifespan (years)4
Customer acquisition cost ($)85
Example results
Estimated customer lifetime value$1,728.00
Annual gross-margin value$432.00
LTV to CAC ratio20.33x
LTV minus CAC$1,643.00

Important limitations

Purchase frequency, margin and lifespan stay constant. This is an undiscounted gross-profit model, excluding changes in retention, service costs outside gross margin, taxes and the time value of money. The LTV:CAC ratio is not defined when CAC is zero.