Customer Lifetime Value (Advanced)
What is the true lifetime value of my customers?
Your numbers
Result
Customer Lifetime Value
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How this is calculated
Calculate customer lifetime value with advanced metrics including retention, repurchase rate, and profit margins. Make better acquisition decisions.
- Annual revenue = AOV x purchase frequency
- Annual profit = annual revenue x margin %
- LTV = annual profit / (1 - retention rate)
What to make of the number
Target LTV:CAC ratio of 3:1 or higher for sustainable growth.
Frequently asked questions
What is a good LTV:CAC ratio?
3:1 is the gold standard. 2:1 is acceptable; below 1:1 is unsustainable.