A clear result in a few inputs.
- Enter the requested values.Use consistent units and the real values for your scenario.
- Read the main result and breakdown.NumLuma recalculates immediately when an input changes.
- Check the formula and assumptions.Use the supporting context before making a real-world decision.
What this calculator does
This simple LTV model estimates total lifetime revenue from average order value, purchase frequency and customer lifespan, then applies gross margin to approximate gross-profit value. It is a planning model, not a cohort forecast, so stable inputs are assumed.
What to know before you use the result
- Lifetime revenue = AOV × purchase frequency × customer lifespan.
- Applying gross margin converts revenue LTV into a gross-profit-style value.
- Retention patterns, discounting and changing behavior are not modeled.
Common mistakes to avoid
- Comparing revenue LTV with a CAC that includes broader costs without noting the difference.
- Using purchase frequency and lifespan from unrelated customer cohorts.
- Treating a simple average model as a precise prediction for each individual customer.