Enter the values used by customer ltv
Estimate customer lifetime value from average order value, purchase frequency, and lifespan. Enter the assumptions for the same time period and currency, and check any minimum or maximum values displayed next to the input fields.
Average order value, Purchases per year, Customer lifespan.
Change one variable so you can see the effect without mixing several assumptions.
The worked example below shows the formula and the independently rendered default-input results.
Calculate customer ltv from sample inputs
These are the same starting values loaded into the interactive calculator above. The displayed results below come from the same calculation engine as the live tool.
Step 1 — Record the inputs
Step 2 — Identify the formula
Step 3 — Substitute the values
For this exact worked case, use Average order value = $65; Purchases per year = 6; Customer lifespan = 3 years. Replace named formula variables with their input values as shown below. Keep the units consistent; a percent is divided by 100 wherever the model requires a decimal rate.
Step 4 — Read the calculated answer
Rounding follows the calculator display: whole units may be rounded up when an indivisible unit is required, while other values typically show up to two decimal places. The result is conditional on the entered assumptions, not a market quotation.
How to interpret this customer ltv result
Estimate how much revenue an average customer may generate over the full relationship.
Tie the metric to a single campaign period and attribution definition. Compare traffic quality and contribution rather than ranking campaigns on the headline figure alone.
Scenario comparison
Test lower conversion or yield while keeping spend constant, then test a higher-cost acquisition scenario.
Assumptions and limitations
Attribution windows, reporting delays and data filtering can change marketing measures without changing the underlying sale.
- Average order value: Enter a finite monetary value of at least 0. Use a consistent definition across comparison cases.
- Purchases per year: Enter a finite numeric value of at least 0. Use a consistent definition across comparison cases.
- Customer lifespan: Enter a finite numeric value of at least 0. Use a consistent definition across comparison cases.
Frequently asked questions
What does this calculator include?
It uses the named inputs above and the formula shown in the worked example. No other fees, revenue streams, or external data are automatically included.
Why could my real result be different?
Attribution windows, reporting delays and data filtering can change marketing measures without changing the underlying sale.
How should I compare two results?
Test lower conversion or yield while keeping spend constant, then test a higher-cost acquisition scenario. Record the assumption that changed so a higher or lower answer is interpretable.
Customer LTV calculation method
Estimate how much revenue an average customer may generate over the full relationship.
What this estimate does—and does not—include
This tool is designed for quick planning and comparison. For tax, accounting, legal, investment, lending, or other regulated decisions, verify the result against the rules and assumptions that apply to your situation.
CalcScoutHQ shows the calculation logic so you can check assumptions, understand the result, and reproduce the math independently when needed.
Benchmark context
LTV is a model, not a known future value. Stable revenue, margin and churn assumptions are especially fragile for young cohorts or changing products.
Decision case
Use conservative, base and upside cases before allowing LTV to justify more acquisition spending; compare realized cumulative contribution as cohorts mature.
Calculation mistakes that change the conclusion
- Using lifetime revenue instead of margin-aware value
- Applying one average churn rate to different segments
- Treating early cohorts as mature
Evidence to review next
- Cohort contribution curve
- Retention distribution
- Service and support cost by segment