{"calculator":{"slug":"customer-lifetime-value-calculator","name":"Customer lifetime value (LTV) calculator","url":"https://infikeytechnologies.com/tools/customer-lifetime-value-calculator"},"inputs":{"currency":"USD","model":"subscription","value":80,"churn":3,"orders":4,"years":3,"margin":70,"discount":10},"inputs_readable":{"Currency":"USD ($)","Business model":"Subscription","Monthly revenue per customer, or average order value":"80","Monthly churn (subscription)":"3%","Orders per year (repeat purchases)":"4","Years as a customer (repeat purchases)":"3","Gross margin":"70%","Annual discount rate":"10%"},"result":{"headline":{"label":"Customer lifetime value (gross profit)","value":"$1,867"},"summary":"Customer lifetime value is about $1,867 in gross profit ($2,667 in revenue) — $80.00 a month × 70% margin ÷ 3% churn. Spend up to about $622 to acquire a customer for a 3:1 LTV:CAC ratio.","verdict":{"tone":"info","text":"Use the gross-profit LTV, not revenue, when deciding how much to spend on acquisition. Raising retention increases LTV the most for subscriptions; raising order frequency does for repeat purchases."},"metrics":[{"label":"Lifetime revenue per customer","value":"$2,667"},{"label":"Discounted LTV (10% a year)","value":"$1,486"},{"label":"Average customer lifetime","value":"33.3 months"},{"label":"Maximum CAC for 3:1 LTV:CAC","value":"$622"},{"label":"Break-even CAC (1:1)","value":"$1,867"}],"chart":{"title":"Lifetime value per customer","items":[{"label":"Lifetime revenue","value":"$2,667"},{"label":"LTV (gross profit)","value":"$1,867","selected":true},{"label":"Discounted LTV","value":"$1,486"},{"label":"Max CAC for 3:1","value":"$622"}]},"notes":["LTV from churn assumes churn stays constant. For young products, cap the lifetime at three to five years to stay conservative."]},"share_url":"https://infikeytechnologies.com/tools/customer-lifetime-value-calculator?currency=USD&model=subscription&value=80&churn=3&orders=4&years=3&margin=70&discount=10","disclaimer":"This calculator is provided free for general information and planning only. Results are estimates based on the inputs you enter and the assumptions described on this page, reference data such as published prices may change, and actual costs and outcomes will differ. Nothing on this page is financial, legal, tax, investment or other professional advice. Infikey Technologies Private Limited, Infikey Technologies LLC and their directors, employees and affiliates make no warranty, express or implied, about the accuracy, completeness or suitability of this tool or its results, and accept no liability for any loss or damage, direct or indirect, arising from its use or from reliance on its results. Verify all figures independently and seek professional advice before making any decision. Use of this tool is at your own risk.","publisher":{"name":"Infikey Technologies","url":"https://infikeytechnologies.com","contact":"https://infikeytechnologies.com/contact"}}