How much is a customer worth over time?

Enter purchase value, frequency, and lifespan. Get LTV and a path to compare against CAC before you set acquisition ceilings.

Enter the average transaction amount
How often customers make purchases annually
How many years does a typical customer stay with you?
Used for industry-specific benchmarks

What this helps you decide

LTV estimates what a customer is worth over the relationship so you can set a CAC ceiling and decide whether retention or acquisition deserves the next dollar.

  • Lifetime, annual, and monthly value
  • Directional industry context
  • Next step toward CAC and payback
  • Shareable link for team review

Calculation History

Need a clearer CAC ceiling?

fisagency helps values-led brands turn LTV into acquisition rules and retention priorities worth defending.

Talk with fisagency →
Decisions

LTV questions founders ask

Use these before you raise acquisition spend or cut retention work.

What inputs make LTV trustworthy?

Use real average order value, purchase frequency, and how long customers typically stay. Inflated lifespan or one-time spikes make LTV look stronger than cash flow can support.

What LTV to CAC ratio should I aim for?

A common planning target is about 3:1. Higher can be healthy; lower usually means acquisition is too expensive or retention is too weak. Pair the ratio with payback timing.

LTV looks strong. What next?

Compare against CAC and break-even. Strong LTV with high CAC or long payback can still be a bad scale decision. Then decide whether retention or acquisition gets the next dollar.

Should I improve LTV before I scale ads?

Often yes when repeat purchase or retention is soft. Raising paid spend on low-LTV customers burns cash faster. Fix offer, lifecycle, and repeat conversion first when the gap is clear.

How often should I recalculate LTV?

Recalculate when pricing, retention, or product mix changes. Quarterly is enough for most teams; monthly when you are actively testing retention or subscription offers.