LTV Customer Lifetime Value Calculator

Customer Lifetime Value (LTV) is the total profit you expect to earn from a customer over their entire relationship with your business.

How to calculate Simple LTV ?

Simple LTV Calculation = Average order value × Number of purchases × Customer lifespan

Example of Simple LTV Calculation:
Monthly spend: ₹1,000
Customer stays: 12 months

LTV = 1,000 × 12 = ₹12,000

Factor	Value
Monthly revenue	₹1,000
Lifetime	12 months
LTV	₹12,000

Now in a realistic context

you need to factor in your ARPU, Gross Margins and Churn Rate as well to get your Real LTV

Real LTV Calculation = (ARPU × Gross Margin) ÷ Churn Rate

Where:
ARPU = Average revenue per user per month
Gross margin = % of revenue you keep after costs
Churn = % of customers who leave each month
This assumes stable churn and pricing.

Why this matters

LTV tells you how much a customer is actually worth.

It answers:

• How much can I afford to spend to acquire a customer?
• Is my pricing sustainable?
• Is my retention good enough?

Without knowing your real LTV Customer Lifetime Value, you can’t make rational decisions about marketing, sales, or growth.