Free tool
Customer Lifetime Value Calculator
By Marnix Geerkens. Published 2026-06-10. Updated 2026-06-10.
In short
This free customer lifetime value calculator shows what a customer is worth over the whole relationship. Enter average purchase value, purchases per year, lifespan, and an optional margin. Add your cost to acquire a customer and it shows the LTV to CAC ratio with a plain-language verdict. Three to one is the common benchmark. All math runs live in your browser.
- Lifetime value from purchase value, frequency, and lifespan.
- Optional LTV to CAC ratio with a plain verdict.
- Free, no signup, nothing stored.
Calculate customer lifetime value
Free tool
Calculate customer lifetime value
Enter what a customer spends, how often, and for how long. The calculator shows lifetime value, and with your acquisition cost it shows the LTV to CAC ratio.
Add your cost to acquire a customer to see the LTV to CAC ratio.
How the math works
LTV equals average purchase value times purchases per year times customer lifespan in years, then times your profit margin. Set margin to 100 percent for a revenue figure, or your real margin for a profit figure. LTV to CAC is lifetime value divided by what you spend to acquire one customer.
3 to 1 is a commonly cited healthy benchmark, not a rule. It means every dollar spent on acquisition returns three over the customer relationship. Below 1 to 1 you lose money on each customer.
LTV is an estimate built on averages. Real customers vary, and a long lifespan assumes you keep them, which takes good follow-up.
Your CRM should know this number for every client without a spreadsheet.
GoHighLevel tracks every customer's spend and history in one place, so lifetime value stops being a guess and becomes a number you watch.
Why lifetime value changes how you spend
Most businesses look at what a customer pays once. Lifetime value looks at what they pay over the whole relationship. That single shift changes how much you can afford to spend to win a customer, and it usually means you can spend more than you thought.
If a customer is worth 200 dollars on the first sale but 1,800 over three years, you are not really paying to win a 200 dollar sale. You are paying to start an 1,800 dollar relationship. Competitors who only look at the first sale will be too scared to outbid you, and you will win the customers they pass on.
This calculator works for any repeat business: a gym, a salon, an agency on retainer, a product people reorder. Enter the typical numbers and it shows the full value, with an optional margin so you can see profit rather than just revenue.
The formula, in plain words
Lifetime value equals average purchase value, times purchases per year, times the number of years a customer stays. That gives revenue over the relationship. Multiply by your profit margin to get the profit version, or leave margin at 100 percent for the revenue version.
The LTV to CAC ratio divides lifetime value by your cost to acquire a customer. A 900 dollar LTV and a 300 dollar acquisition cost is a 3 to 1 ratio. The common benchmark is 3 to 1, meaning each acquisition dollar returns three. Below 1 to 1 you are losing money on every new customer.
Tips for raising lifetime value
Increase how often people buy. A reminder, a subscription, or a simple follow-up after a purchase lifts frequency, and frequency multiplies straight into LTV.
Extend the relationship. Keeping a customer one extra year often costs far less than finding a new one, and it raises lifetime value more than a one-time upsell.
Raise the average order with bundles or add-ons. A small lift in purchase value, multiplied across every purchase and year, compounds into a much larger lifetime value.
Win back the quiet ones. Customers who drift away still know and trust you. A re-engagement message is cheaper than a cold ad and protects the lifespan side of the formula.
Your CRM should know this number for every client
Lifetime value is far more useful when it is a live number per customer, not a one-time estimate in a spreadsheet. The trouble is that spend, frequency, and history live in different tools, so most businesses never see it.
GoHighLevel keeps every customer's purchases, bookings, and history on one record, so lifetime value stops being a guess and becomes something you watch and act on. When you know what a client is worth, you know exactly how hard to work to keep them.
Frequently asked questions
How do you calculate customer lifetime value?
Multiply the average purchase value by how often a customer buys per year, then by how many years they stay. Multiply by your profit margin for a profit figure, or use 100 percent for a revenue figure. This calculator does the math live as you type.
What is the LTV to CAC ratio?
It compares lifetime value to the cost of acquiring a customer. If a customer is worth 900 dollars and costs 300 to win, the ratio is 3 to 1. It tells you how many dollars each acquisition dollar returns over the relationship.
What is a good LTV to CAC ratio?
Three to one is a commonly cited healthy benchmark, not a hard rule. It means every dollar spent winning a customer returns three over their lifetime. Below one to one, you lose money on each customer. Far above three to one can mean you are underspending on growth.
Should I use revenue or profit for LTV?
Both are useful. Revenue LTV (margin at 100 percent) shows the top-line value. Profit LTV (your real margin) shows what you actually keep, which is the better number to compare against acquisition cost.
Is the LTV calculator free?
Yes. It is free, needs no signup, and runs in your browser. Nothing you enter is stored or sent anywhere.