Customer Lifetime Value Calculator
The simple formula: average order × purchases per year × years they stay. The number you should never spend more than this to acquire.
One customer is worth
$1,080
$45 × 8 purchases/yr × 3 yrs = $1,080 lifetime value. Annual: $360.
How this works
Lifetime Value (LTV) is the total revenue a customer brings over the entire time they buy from you. It's the most important number in small business marketing — because it sets your acquisition ceiling. If LTV is $500, spending $100 to acquire a customer is great; $600 is bankruptcy.
Industry benchmarks
| Industry | Typical LTV | vs you |
|---|---|---|
| Coffee shops | $300 – $1,200 | in range |
| Restaurants | $400 – $1,800 | in range |
| Salons & spas | $600 – $2,400 | in range |
| Gyms & fitness | $800 – $3,000 | in range |
| Yoga studios | $700 – $2,200 | in range |
| Retail boutiques | $250 – $1,500 | in range |
| Bakeries | $200 – $900 | above |
| Service businesses | $1,500 – $8,000 | below |
| Subscription/SaaS SMB | $1,200 – $6,000 | below |
| Pet services | $600 – $3,000 | in range |
Increase LTV with perks.
Customers in perk programs come back ~3x more often and refer friends. Both increase the inputs to this formula.
See how it works →