Lifetime Value (LTV) Calculator – Estimate Customer LTV & LTV/CAC Ratio | tolkit.me

The Lifetime Value (LTV) Calculator on tolkit.me estimates how much revenue and profit an average customer generates over their relationship with your business.

You enter:

• Average Order Value
• Purchase Frequency (orders per year)
• Customer Lifespan (years)
• Profit Margin (%)

The tool then calculates:

• LTV (profit-based lifetime value)
• LTV/CAC Ratio (if you provide CAC)
• Simple industry-style benchmarks to interpret your numbers

Results are displayed in a clean results card, with an optional bar graph comparing LTV vs CAC built entirely with front-end JavaScript if you choose to implement it.

LTV tells you how much an average customer is worth to your business over time. When you combine it with CAC (Customer Acquisition Cost), you can see whether your acquisition strategy and pricing are sustainable.

Tracking LTV helps you:

• ✔️ Decide how much you can afford to spend to acquire a customer
• ✔️ Evaluate subscription, e-commerce or SaaS business models
• ✔️ Prioritize retention and upsell strategies
• ✔️ Compare customer segments (high-value vs low-value)
• ✔️ Communicate unit economics clearly to stakeholders

The UI is structured with inputs on one side and a clean results card on the other, optionally with a bar graph comparing LTV vs CAC. As you type, all values update in real time.

• 1
  Enter your Average Order Value:
  This is the average amount a customer spends per order (for example, your store’s AOV over the last few months).
• 2
  Set the Purchase Frequency:
  Enter how many times, on average, a customer purchases per year. This could be calculated from historical order data.
• 3
  Define Customer Lifespan (years):
  Estimate how long an average customer stays active (for example, 1–3 years for e-commerce, more for subscriptions).
• 4
  Enter Profit Margin (%):
  Input your average profit margin after cost of goods and direct expenses. This lets the tool calculate profit-based LTV, not just revenue-based LTV.
• 5
  (Optional) Provide CAC to see LTV/CAC:
  If your UI includes a CAC field, you can enter your Customer Acquisition Cost. The calculator will then show your LTV/CAC ratio and highlight it using industry-style benchmarks.
• 6
  Review the results card (and optional bar graph):
  The results card typically includes:
  • LTV (profit-based)
  • LTV/CAC Ratio (if CAC is provided)
  • Text-based industry benchmarks and a simple interpretation
  Optionally, a bar graph can visualize LTV vs CAC for quick comparison.

The Lifetime Value (LTV) Calculator uses standard unit-economics formulas and runs entirely in your browser with pure JavaScript. No backend or API is required.

A common profit-based LTV formula looks like this:

• Annual Revenue per Customer = Average Order Value × Purchase Frequency
• Annual Profit per Customer = Annual Revenue per Customer × Profit Margin (%)
• LTV = Annual Profit per Customer × Customer Lifespan (years)

If you provide CAC, the tool also calculates:

• LTV/CAC Ratio = LTV ÷ CAC

You can adjust AOV, purchase frequency, margin and lifespan to simulate different scenarios, such as launching a subscription, increasing prices or improving retention campaigns.