Customer Life Time Value (LTV) Calculator
Use this Customer Life Time Value Calculator to calculate the Life Time Value of a customer, which is the monetary value of a customer over their lifespan as a customer.
Enter the average life of a typical customer in years. For example, a customer who purchases several times a year for three years and then stops would have an average life of 3 years.
Enter the average number of purchases the customer makes in a year and the average value of those purchases. Enter the average gross margin percentage for that purchase.
You may double click in each box to enter the values directly, or you may use the up/down arrow that appears over the box when you hover the cursor over it to select the values by dragging the up/down arrow, up or down. Once entered, you can use the up/down arrow to adjust your values.
From the scrolling list boxes, select the retention rate, the inflation rate and the discount rate to be used in the calculation. If you're not sure of what the terms mean, click the definitions tab to read the definitions of each term.