Customer Lifetime Value Calculator
Last updated: October 15, 2026
Estimate gross-margin customer lifetime value and compare it with CAC.
Estimated customer lifetime value
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- 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.
Read the complete guide
Updated reference sections in this guide are in English.
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
| Average purchase value ($) | 120 |
|---|---|
| Purchases per year | 6 |
| Gross margin (%) | 60 |
| Average customer lifespan (years) | 4 |
| Customer acquisition cost ($) | 85 |
| Estimated customer lifetime value | $1,728.00 |
|---|---|
| Annual gross-margin value | $432.00 |
| LTV to CAC ratio | 20.33x |
| 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.