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
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.