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Lifetime Value

Lifetime Value (LTV or CLV) is the total revenue a business can expect from a single customer relationship. It is the counterpart to CAC — together they define unit economics. Our calculator supports both the simple formula and the more accurate discounted cash flow (DCF) model that accounts for the time value of money.

$

Revenu moyen par transaction

Combien de fois un client type achète par an

Nombre moyen d'années de fidélité client

Optional — for deeper insights

%

Utilisé pour calculer le LTV de profit

$

Utilisé pour calculer le ratio LTV:CAC

Valeur vie client

Revenus sur la durée de vie du client

Valeur client annuelle
LTV de profit
Ratio LTV:CAC

Qu'est-ce que la valeur vie client et pourquoi c'est important

Customer Lifetime Value (LTV or CLV) is the total revenue you can expect from a single customer over the entire duration of their relationship with your business. It's one of the most important metrics for any company because it directly answers the question: how much can I afford to spend to acquire a new customer?

The formula is straightforward: LTV = Average Purchase Value × Purchase Frequency × Customer Lifespan. If a customer spends $150 per order, buys 4 times a year, and stays for 3 years, their LTV is $1,800.

Businesses that know their LTV can confidently invest in marketing, offer discounts to retain customers, and price their products strategically. Without it, you're guessing at one of the most critical numbers in your business model.

LTV:CAC Ratio — The Metric That Defines Business Health

The LTV:CAC ratio compares what a customer is worth to what it costs to acquire them. A ratio of 1:1 means you break even on every customer — there's no room for operating costs or profit. A ratio below 1:1 means you're losing money on each acquisition.

The benchmark most investors and operators use is 3:1 — your LTV should be at least 3 times your CAC. If your ratio is much higher than 3:1, it may mean you're under-investing in growth. If it's lower than 3:1, focus on improving retention, raising prices, or lowering acquisition costs.

Tracking this ratio over time tells you whether your business is becoming more or less efficient. Growing companies often see their LTV:CAC improve as word-of-mouth increases and CAC drops while LTV stays steady or rises.

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À propos de Customer Lifetime Value (LTV) Calculator

Lifetime Value (LTV or CLV) is the total revenue a business can expect from a single customer relationship. It is the counterpart to CAC — together they define unit economics. Our calculator supports both the simple formula and the more accurate discounted cash flow (DCF) model that accounts for the time value of money.

Comment l'utiliser

  1. Enter average revenue per user per month (ARPU) and average customer lifespan in months.
  2. Or enter average order value, purchase frequency, and churn rate.
  3. Enter your gross margin to see Gross Profit LTV (what actually matters for CAC comparison).
  4. Use DCF mode to account for the fact that future revenue is worth less than present revenue.

Formule et méthodologie

Simple LTV = ARPU × average customer lifespan (months). Churn-based: LTV = ARPU ÷ monthly churn rate. Gross Profit LTV = LTV × gross margin. DCF LTV = Σ(monthly revenue × gross margin / (1 + discount rate)^month). LTV:CAC = Gross Profit LTV ÷ CAC. Target: LTV:CAC > 3.

Cas d'usage courants

  • Determining maximum sustainable CAC for profitability
  • Segmenting customers by LTV to focus retention on high-value accounts
  • Product pricing: higher LTV allows premium pricing and more CAC budget
  • Cohort analysis: comparing LTV across acquisition cohorts and channels
  • Investor materials: demonstrating unit economics viability

Questions fréquentes

LTV is compared to CAC to assess profitability. CAC is a cost; it must be offset by gross profit, not revenue. If ARPU = $100 and COGS = $60, gross profit per month = $40. LTV = $40 × lifespan, not $100 × lifespan. Using revenue LTV inflates the ratio by 2.5× and creates a false picture of unit economics. Always use gross profit LTV in LTV:CAC calculations.
Dramatically. LTV = ARPU ÷ monthly churn. At 2% monthly churn: lifespan = 50 months, LTV = 50 × ARPU. At 5% monthly churn: lifespan = 20 months, LTV = 20 × ARPU. At 10% churn: only 10 months. A 5-percentage-point reduction in churn more than doubles LTV. This is why retention improvements have higher leverage than acquisition improvements in mature subscription businesses.

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