Customer Lifetime Value Calculator (LTV)
What a customer is worth over their whole relationship.
Your numbers
Lifetime value (profit)
₹7,200
Lifetime revenue
₹14,400
The formula
LTV = AOV × Orders per year × Years × Gross margin
Worked example
₹1,200 AOV × 4 orders × 3 years = ₹14,400 revenue, ₹7,200 profit at 50% margin.
Frequently asked
Should LTV use revenue or profit?
Use profit (apply your margin) when deciding how much you can spend to acquire a customer. Revenue LTV overstates what you can afford.