# Customer lifetime value calculator for subscriptions and repeat purchases

> Customer lifetime value (LTV or CLV) is the gross profit a customer brings over their whole relationship with you. For subscriptions: LTV = monthly revenue per customer × gross margin ÷ monthly churn. For repeat purchases: LTV = average order value × orders per year × years as a customer × gross margin. Dividing LTV by three gives a common ceiling for customer acquisition cost.

- Interactive version: https://infikeytechnologies.com/tools/customer-lifetime-value-calculator
- Type: free instant calculator
- Category: SaaS
- Last reviewed: 2026-10-05
- Publisher: Infikey Technologies (https://infikeytechnologies.com)

## Example result (default inputs)

| Input | Value |
| --- | --- |
| 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% |

**Customer lifetime value (gross profit): $1,867.** 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.

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.

| Metric | Value |
| --- | --- |
| Lifetime revenue per customer | $2,667 |
| Discounted LTV (10% a year) | $1,486 |
| Average customer lifetime | 33.3 months |
| Maximum CAC for 3:1 LTV:CAC | $622 |
| Break-even CAC (1:1) | $1,867 |

### Lifetime value per customer

| Item | Value | Detail |
| --- | --- | --- |
| Lifetime revenue | $2,667 |  |
| LTV (gross profit) (selected) | $1,867 |  |
| Discounted LTV | $1,486 |  |
| Max CAC for 3:1 | $622 |  |

- LTV from churn assumes churn stays constant. For young products, cap the lifetime at three to five years to stay conservative.

Open this result on the website: https://infikeytechnologies.com/tools/customer-lifetime-value-calculator?currency=USD&model=subscription&value=80&churn=3&orders=4&years=3&margin=70&discount=10

## Use from a link or API

Add these query parameters to https://infikeytechnologies.com/tools/customer-lifetime-value-calculator (pre-filled page), https://infikeytechnologies.com/tools/customer-lifetime-value-calculator.md (this plain-text page) or https://infikeytechnologies.com/api/tools/customer-lifetime-value-calculator (JSON).

| Parameter | Meaning | Accepted values |
| --- | --- | --- |
| `currency` | Currency | one of USD, INR, AED, GBP, EUR |
| `model` | Business model | one of subscription, repeat |
| `value` | Monthly revenue per customer, or average order value | number from 0 to 100000000 (in the chosen currency), default 80 |
| `churn` | Monthly churn (subscription) | number from 0.01 to 100 (%), default 3 |
| `orders` | Orders per year (repeat purchases) | number from 0.1 to 365, default 4 |
| `years` | Years as a customer (repeat purchases) | number from 0.1 to 50, default 3 |
| `margin` | Gross margin | number from 1 to 100 (%), default 70 |
| `discount` | Annual discount rate | number from 0 to 50 (%), default 10 |

- SaaS subscription: https://infikeytechnologies.com/tools/customer-lifetime-value-calculator?currency=USD&model=subscription&value=99&churn=2.5&orders=4&years=3&margin=80&discount=10
- Coffee subscription: https://infikeytechnologies.com/tools/customer-lifetime-value-calculator?currency=USD&model=subscription&value=30&churn=8&orders=4&years=3&margin=40&discount=10
- Online fashion store: https://infikeytechnologies.com/tools/customer-lifetime-value-calculator?currency=USD&model=repeat&value=70&churn=3&orders=3&years=2.5&margin=50&discount=10

## How it is calculated

- **Subscription LTV**: monthly revenue per customer × gross margin ÷ monthly churn
- **Repeat-purchase LTV**: average order value × orders per year × years × gross margin
- **Discounted subscription LTV**: monthly gross profit ÷ (1 − (1 − churn) ÷ (1 + monthly discount rate))
- **Maximum CAC**: LTV ÷ 3

## Why use gross profit, not revenue?

Revenue LTV overstates what a customer is worth because it ignores the cost of serving them — hosting, support, products and payment fees. Gross-profit LTV is the amount actually available to pay for acquisition and overheads.

Many published “LTV” figures are revenue-based; check which one you are comparing against.

## What LTV is used for

- Setting the maximum you can spend to acquire a customer.
- Comparing channels and customer segments by long-term value, not first order.
- Deciding how much to invest in retention and customer success.
- Valuing the customer base for investors.

## How to increase customer lifetime value

- Reduce churn with onboarding and proactive support.
- Offer upgrades, add-ons and annual plans.
- Encourage repeat purchases with email, loyalty and subscriptions.
- Raise prices for the value you deliver, and grandfather loyal customers fairly.

## FAQ

### How do you calculate customer lifetime value?

For subscriptions, divide monthly gross profit per customer by monthly churn. For repeat purchases, multiply average order value by orders per year, years as a customer and gross margin.

### What is the difference between LTV and CLV?

They are the same idea: customer lifetime value. LTV is more common in SaaS, CLV or CLTV in retail and marketing.

### What is a good LTV?

There is no absolute figure; what matters is LTV compared with acquisition cost. A ratio of 3:1 or higher is the commonly cited benchmark.

### Why discount LTV?

Profit received years from now is worth less than profit today. Discounting gives a more conservative value, especially with long lifetimes.

## Get expert help

Send these results to an Infikey Technologies specialist from the form on https://infikeytechnologies.com/tools/customer-lifetime-value-calculator#estimate or via https://infikeytechnologies.com/contact.

More free calculators: https://infikeytechnologies.com/tools.md

## 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.