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Customer lifetime value — simple model

Estimate gross-profit customer lifetime value and net contribution after acquisition cost using your assumptions.

Make it your own ⌁ Runs on your device

Your inputs are processed locally and are not added to analytics or saved history.

YOUR RESULT
Ready when you are.

Enter your values, then select Calculate.

How it works

Gross-profit LTV = order value × yearly orders × lifetime × gross margin; net contribution subtracts CAC.

Input definitions

Average order value
Enter the value in the labeled unit.
Orders per customer per year
Enter the value in the labeled unit.
Average customer lifetime in years
Enter the value in the labeled unit.
Gross margin (%)
Enter the value in the labeled unit.
Acquisition cost per customer
Enter the value in the labeled unit.

A worked example

Average order value
100
Orders per customer per year
4
Average customer lifetime in years
3
Gross margin (%)
40
Acquisition cost per customer
100
480.00

Assumptions & limits

Single-currency planning model using entered rates; two-decimal half-up currency rounding. No taxes, regulatory APR, live quote or investment-return prediction unless explicitly stated.

Sources & review

Maintained by AnsRio. Methods and examples use automated checks; this does not imply independent professional certification.

Method updated 2026-10-17. Content checked against the stated method and examples. Our verification approach.

Common questions

Are tax, overhead and refunds included automatically?

Only the costs and rates explicitly entered or described in the formula are included. Use consistent currencies and periods, and check what your own accounting policy requires.

How does the Customer lifetime value — simple model tool work?

Gross-profit LTV = order value × yearly orders × lifetime × gross margin; net contribution subtracts CAC.

What are the assumptions and limits of Customer lifetime value — simple model?

Single-currency planning model using entered rates; two-decimal half-up currency rounding. No taxes, regulatory APR, live quote or investment-return prediction unless explicitly stated.

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