Customer lifetime value

LTV Calculator

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Average order value

Orders per year

Customer lifespan (years)

LTV = AOV × Orders/yr × Lifespan

LTV is the total gross revenue you expect from a customer over their lifetime. Keep CAC well under a third of this.

LTV

$720

Each customer is worth ~$720 over 3 years. Keep CAC under $240.

Revenue / year$240

Max healthy CAC$240