Customer Lifetime Value

LTV Calculator

$720
LTV (Revenue)
$288
LTV (Profit)
4.8×
LTV:CAC
8 months
CAC Payback Period

LTV Formulas

FormulaUse When
LTV = AOV × Frequency × LifespanSimple baseline
LTV = (AOV × GM%) × Frequency × LifespanProfit-based LTV
LTV = ARPU / Churn RateSaaS / subscription
LTV = ARPU × (1/Churn) × GM%SaaS with margin

Retention Strategies by Stage

StageStrategy
OnboardingWelcome email series, first-purchase thank you, tutorial content
EngagementLoyalty program, personalization, exclusive member benefits
Win-backSunset email with discount, "We miss you" campaign, product update
At-riskChurn prediction model, proactive support outreach, skip/pause option