How to Calculate Customer Lifetime Value (LTV)

Oct 15, 2023 Updated: Mar 18, 2024
1 minute read
By: Jack Nicholaisen author image

LTV is an important metric because it helps businesses understand the overall value of their customer base and make decisions about how much to invest in retaining customers.

Customer Lifetime Value (LTV) Calculator

Average Purchase Value ($):

Average Purchase Frequency per Year:

Average Customer Lifespan (Years):

Average Gross Margin (%):

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About the Author

Jack Nicholaisen

Jack Nicholaisen is the founder of Businessinitiative.org. After acheiving the rank of Eagle Scout and studying Civil Engineering at Milwaukee School of Engineering (MSOE), he has spent the last 4 years disecting the mess of informaiton online about LLCs in order to help aspiring entrepreneurs and established business owners better understand everything there is to know about starting, running, and growing Limited Liability Companies and other business entities.