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Customer Lifetime Value (CLV/LTV) Calculator

Calculate CLV/LTV and your LTV:CAC ratio — the two numbers that tell you whether acquisition economics work.

Customer inputs

$720
Revenue CLV
Total lifetime revenue per customer

Formula

CLV = Purchase Value × Purchase Frequency × Customer Lifespan

Uses the traditional CLV formula. For discounted future cash flows, multiply by a discount rate.

What gets calculated

  • Gross CLV — average purchase value × purchase frequency × customer lifespan
  • Gross Profit CLV — gross CLV adjusted for your margin percentage
  • LTV:CAC ratio — lifetime value divided by your cost to acquire one customer

The ratio benchmarks

LTV:CAC of 3:1 or higher is healthy for most SaaS businesses. Below 1:1 means you're acquiring customers at a loss — unsustainable before Series A, fatal after. Above 5:1 often signals underinvestment in acquisition.

How to use it

  1. Enter average purchase value, purchase frequency per year, and customer lifespan in years
  2. Add your gross margin % for a profit-adjusted LTV
  3. Enter CAC to see the LTV:CAC ratio and its benchmark label
  4. Adjust inputs to model different pricing or retention scenarios

Who this is for

SaaS founders tracking unit economics before a fundraise. Marketing teams building the business case for investing in organic channels with longer payback periods. Anyone running paid acquisition who needs to know the ceiling on cost-per-acquisition before a channel becomes structurally unprofitable.

Frequently asked questions

Is this customer lifetime value calculator free?

Yes, free and no signup.

What is the difference between CLV and LTV?

They are the same metric. CLV (customer lifetime value) and LTV (lifetime value) are used interchangeably.

Why does CLV matter for SEO?

It tells you how much organic traffic is really worth, which is the input that makes SEO ROI honest.

Related tools: SEO ROI calculator and CTR calculator. Background reading: from data to action.