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Gross-Profit Customer Lifetime Value Calculator

Estimate lifetime gross profit from recurring purchases and lifespan.

Use a consistent reporting periodCheck the calculation below

Your business figures

Runs on your device

METRIC SNAPSHOT

Your result

Let’s calculate.

Use the Calculate button to see your result.

Review the method below for assumptions and conventions.

How to use this tool

  1. Enter average order value, orders per year, customer lifespan, gross margin.
  2. Select Calculate to view the result.
  3. Check the method and assumptions below before using the result.

The method, explained

LTV = average order × orders/year × years × gross margin/100.

A WORKED EXAMPLE

Using average order value = 50 money, orders per year = 4, customer lifespan = 3 years, gross margin = 40 %, the result is 240 currency. Change these example inputs to match your task; use the method above to check each step.

What to keep in mind

Undiscounted approximation; acquisition and retention costs are excluded. Use consistent currencies, reporting periods and accounting definitions. This arithmetic estimate excludes items not entered in the form.

Common questions

Which inputs does this calculation need?

Estimate lifetime gross profit from recurring purchases and lifespan. Enter average order value in money, orders per year, customer lifespan in years, gross margin in %. The filled example is editable and is not a saved personal record.

How should I interpret the result?

Undiscounted approximation; acquisition and retention costs are excluded. Use consistent currencies, reporting periods and accounting definitions. This arithmetic estimate excludes items not entered in the form.

Methodology maintained by ClarityKit. How these tools are built and checked.