Unit Economics

Customer Lifetime Value Calculator

What one customer is worth in margin dollars over the whole relationship — the number that decides how much you can spend to win them.

Inputs

  • Average order value
  • Orders per year
  • Retention years
  • Margin

How to use this calculator

  1. Enter the average order value and how many times a year a customer buys.
  2. Add how many years they stay and your margin percentage.
  3. The headline lifetime value is what one customer is worth in profit. Pair it with CAC to judge whether growth is healthy.

What each term means

LTV (lifetime value)
Total profit one customer generates over their entire relationship.
Retention years
How long the average customer keeps buying before churning.
Margin %
Share of revenue left as profit after variable costs.

Educational disclaimer: Outputs are simplified educational estimates built from the numbers you enter — they are not financial, legal, tax, or investment advice, and real decisions deserve verified figures and qualified professionals.

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