Home › Free Tools › Customer Lifetime Value (LTV) Calculator
Work out how much revenue an average customer brings over their whole relationship with you — and how much you can afford to spend to win one. The customer lifetime value (LTV/CLV) formula, calculated instantly.
Customer lifetime value (LTV, also called CLV) is the total revenue you can expect from a typical customer across their entire relationship with your business — not just their first purchase. It reframes how much you can afford to spend to win a customer and how much a loyal, repeat customer is really worth compared to a one-time sale.
Enter three things: your average order value (what a customer typically spends per visit), how many times they buy per year, and how many years an average customer stays with you. The calculator multiplies them to estimate lifetime value, and also shows annual value per customer so you can sanity-check the inputs.
The formula is LTV = average order value × purchases per year × customer lifespan in years. For a repair shop, a customer who comes back twice a year for a few years is worth far more than the first screen repair suggests — which is exactly why retention, follow-ups and review requests pay off. Pair this with the CAC calculator: as long as LTV comfortably exceeds what you spend to acquire a customer (ideally 3× or more), growth is profitable.
Worked example: a phone repair shop has an average ticket of $80, and a typical customer comes back twice a year for about four years. LTV = $80 × 2 × 4 = $640, with an annual value of $160 per customer. That number changes decisions: at the common 3:1 LTV-to-CAC target, you could spend up to roughly $213 to win each customer and still grow profitably. Retention moves it fast, too — keeping that same customer one extra year lifts LTV to $800, a 25% increase without finding a single new customer. For the stricter profit view, multiply by your gross margin: at 40%, that $640 revenue LTV is about $256 of actual profit per customer.
StandupCRM tracks repeat visits and spend per customer for repair shops so LTV is measured from real data — this tool gives you a fast estimate.
Multiply average order value by purchases per year by the number of years a customer stays. This tool does it instantly.
Take what a customer spends per purchase × how often they buy per year × how many years they stay. Example: $80 average ticket × 2 purchases a year × 4 years = $640 lifetime value ($160 per year). Enter your own numbers above to get it instantly.
This calculator returns revenue LTV, the most common version. For profit LTV, multiply the result by your gross margin — e.g. $640 × 40% margin ≈ $256 — which is the true ceiling on what you can afford to spend to acquire a customer.
It tells you how much you can afford to spend to acquire a customer and how much repeat business is worth.
LTV should comfortably exceed customer acquisition cost — many businesses target at least 3:1.
Yes, free and no signup — it runs entirely in your browser and nothing you enter is stored.
StandupCRM gives repair shops Google Ads landing pages, lead capture, and a CRM dashboard — plus free tools like this to bring customers in.
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