Customer LTV Calculator (ADHD-Friendly)
Calculate how much each customer is worth to your business. Simple LTV math for ADHD entrepreneurs.
How much is a customer actually worth to your business? Not the first sale — the total over their entire relationship. This is Customer Lifetime Value, and it's the most important number you're probably not tracking. Enter average purchase value, how often they buy per year, and how many years they stay. See the total value. If each customer is worth $1,500 over their lifetime, you know you can afford to spend up to $500 acquiring them (and still make $1,000 profit). That's powerful knowledge.
Calculator
Common use cases
- Understanding the real value of each customer
- Setting marketing and acquisition budgets
- Making sense of business metrics without spreadsheets
- Prioritizing customer retention over constant new acquisition
How to use
- Enter average purchase value
- Input average number of purchases per year
- Estimate customer relationship length in years
- Add gross margin percentage for profit-based LTV
FAQ
How do I estimate customer lifespan?
Use churn rate: Lifespan = 1 / Churn Rate. If 20% of customers leave each year, lifespan is 5 years.
Should I use revenue or profit for LTV?
Profit-based LTV is more accurate for setting acquisition budgets. Revenue-based is useful for comparison.
What's a good LTV:CAC ratio?
Generally, LTV should be at least 3x CAC. Higher ratios indicate more efficient customer acquisition.
Why does LTV matter so much?
It tells you how much you can afford to spend on marketing. High LTV = you can outspend competitors. Low LTV = you need efficiency.
This calculator provides illustrative estimates for planning purposes only and does not constitute financial, tax, or legal advice.