Calculate your LTV
Frequently Asked Questions
How do you calculate your LTV?
LTV (Customer Lifetime Value) estimates the total revenue (or profit) you’ll earn from a customer over their relationship with your business.
Simple ecommerce formula (revenue-based):
LTV=Average Purchase Value×Purchase Frequency (per year)×Customer Lifespan (years)
Example: If customers spend £40 per order, buy 6 times a year, and stay for 3 years:
£40×6×3=£720£40 \times 6 \times 3 = £720£40×6×3=£720 LTV.