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NumLuma› Business›Customer LTV

Customer Lifetime Value Calculator

Estimate customer lifetime value from average order value, purchase frequency, lifespan and gross margin. See lifetime revenue and gross-profit LTV.

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Estimated LTV Live result
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Calculation breakdown
How to read this result

Use the result to compare scenarios and verify the inputs, units and real-world conditions before making an important decision.

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Useful next calculationCAC
How to use it

A clear result in a few inputs.

  1. Enter the requested values.Use consistent units and the real values for your scenario.
  2. Read the main result and breakdown.NumLuma recalculates immediately when an input changes.
  3. 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.
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Built to be understandable before it is impressive.

  • Formula shown clearly
  • No sign-up required
  • Mobile-first controls
  • Inputs processed locally
  • Plain-language result breakdown
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Assumptions & scope

Know what the number includes.

Commercial business intent. Define the metric precisely and distinguish it from neighboring metrics to avoid thin or interchangeable pages.

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Quick answers

About the customer ltv calculation.

What does this LTV calculator measure?

It estimates lifetime revenue and then applies gross margin to approximate the gross profit generated by an average customer under constant assumptions.

Is LTV the same as CLV?

The terms lifetime value and customer lifetime value are often used interchangeably, although organizations may define the exact metric differently.

Why include gross margin?

Revenue is not the same as economic value. Applying gross margin gives a closer view of the amount remaining after the cost definition represented by that margin.

Should I discount future cash flows?

This simplified model does not. More advanced CLV models can include retention curves, discount rates and cohort-specific behavior.