Customer lifetime value
Calculator.
We estimate customer contribution over a stated lifespan or finite retention window.
Your assumptions
Illustrative defaults only, never Further or client figures. Currency is AUD, excluding GST. Enter 20 for 20%. Optional fields can stay blank or zero. Your inputs stay on this page.
Scenario result
Contribution LTV
A$240.00
- Revenue LTV
- A$600.00
- Expected purchases per customer
- 6
- Contribution LTV:CAC
- N/A
A$240 is what a customer is worth in contribution, which is what the acquisition has to come out of. The revenue figure is A$600, and this is the one to use, because paying up to a revenue number is how brands overpay. Based on about 6 purchases per customer.
The maths
Simple lifespan: 3 years = 3 purchase-year equivalents.
Revenue LTV = 2 × 100 × 3 = 600 AUD. Contribution LTV = 600 × 40% = 240 AUD.
Contribution LTV:CAC = 240 / 0.
Before you use it
Simple mode assumes activity for the full lifespan. Retention mode starts with the whole cohort in year one, then applies annual retention through the finite window. No discount rate or reactivation is included.
This is a planning scenario, not a forecast or financial advice. Compare it with your actual order and customer records before changing spend.
Questions worth asking
Does annual retention equal customer lifespan?
No. A lifespan is a number of years. Annual retention is the fraction of an active cohort remaining each year. The retention mode sums those fractions over the years you enter.
Does LTV:CAC use revenue or contribution?
We use contribution LTV divided by CAC, before subtracting CAC itself. A zero or blank CAC shows N/A. This ratio excludes fixed overheads and the time value of money.
Keep working through the numbers
Put the numbers to work.
We can look at the assumptions with you and decide what to test next.