How should I estimate customer lifespan?

Use historical retention or repeat-purchase data when available. The result is a planning estimate and depends on the quality of that assumption.

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Customer Lifetime Value (LTV) Calculator

Estimate the revenue and gross profit associated with a customer over an assumed customer lifespan.

Average order value ($)Purchases per customer per yearEstimated customer lifespan (years)Gross margin (%)

Estimated lifetime revenue

$1,200.00

Estimated lifetime gross profit

$720.00

Purchases over customer lifespan

Gross margin

60%

Formula and assumptions

Lifetime revenue = average order value × purchases per year × customer lifespan. Lifetime gross profit = lifetime revenue × gross margin.

Planning estimate only. Results depend on the values and assumptions entered and are not accounting, tax, legal, or financial advice.

Frequently Asked Questions

Lifetime revenue estimates total customer sales. Lifetime gross profit applies your gross margin to that revenue; it is before acquisition costs and other operating expenses.