Customer LTV Calculator

Estimate customer lifetime value from revenue, margin and retention assumptions. Enter your own values below to see estimated customer lifetime value and check the method behind it.

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Your result and breakdown will appear here.

How this calculator works

Customer LTV = monthly revenue per customer × gross margin ÷ monthly churn. Assumes constant churn and margin.

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What is Customer LTV Calculator?

Customer LTV Calculator helps you estimate customer lifetime value from revenue, margin and retention assumptions.

The main result is estimated customer lifetime value, with a breakdown of estimated lifetime. The formula, example and assumptions below explain how to interpret it.

How to use Customer LTV Calculator

Use the example to get familiar with the form, then enter your own figures. Any rates in the example are illustrative. Check the field labels and units before calculating.

  1. Gather average monthly revenue per customer (₹), gross margin (%) and monthly customer churn (%). Use values from the same situation or reporting period.
  2. Replace the example average monthly revenue per customer with your own value, then complete the other fields. Check the displayed units.
  3. Select Calculate and read estimated customer lifetime value with its result breakdown. Change one input and calculate again to compare a second scenario. Reset restores the original example.
  • Enter average monthly revenue per customer in ₹, at least 0. Decimals are accepted.
  • Enter gross margin in %, at least 0 and at most 100. Decimals are accepted.
  • Enter monthly customer churn in %, at least 0 and at most 100. Decimals are accepted.

Customer LTV Calculator: a worked example

With the inputs below, the result is ₹14,000 (estimated customer lifetime value). Follow the example, then replace these illustrative values with your own.

Example inputs and output
Input or outputExample value
Average monthly revenue per customer (₹)₹1,000
Gross margin (%)70 %
Monthly customer churn (%)5 %
Estimated customer lifetime value₹14,000
Estimated lifetime20 months

Understanding the Customer LTV result

Read estimated customer lifetime value alongside estimated lifetime. These describe different parts of the same calculation.

Displayed results use a readable number of decimal places. When checking a result by hand, keep extra precision until the last step. To compare scenarios, change one input at a time and keep the others fixed.

  • Example Estimated lifetime: 20 months

Customer LTV Calculator: assumptions and common mistakes

A useful estimate starts with the right inputs. Check the following assumptions and limits before applying the result to your situation.

  • Separate revenue from cash receipts and cost from selling price. Check the denominator before comparing a margin with a markup.

For wider guidance, visit ICAI. The formula and scope of this specific tool are stated on this page.

Customer LTV Calculator FAQs

What does Customer LTV Calculator calculate?

Customer LTV Calculator helps you estimate customer lifetime value from revenue, margin and retention assumptions. Its main output is estimated customer lifetime value in ₹.

What inputs do I need for Customer LTV Calculator?

You need average monthly revenue per customer (₹), gross margin (%) and monthly customer churn (%). Use the field labels and units to match your figures to the formula.

Which formula does Customer LTV Calculator use?

Customer LTV = monthly revenue per customer × gross margin ÷ monthly churn. Assumes constant churn and margin.

What is a worked example for Customer LTV Calculator?

Example inputs: Average monthly revenue per customer: ₹1,000; Gross margin: 70 %; Monthly customer churn: 5 %. The result is ₹14,000 (estimated customer lifetime value).

How should I enter average monthly revenue per customer?

Enter average monthly revenue per customer in ₹, at least 0. Decimals are accepted.

How do I choose gross margin?

Enter gross margin in %, at least 0 and at most 100. Decimals are accepted. The example uses 70 %; replace it if your circumstances differ.

How should I read estimated customer lifetime value?

Read estimated customer lifetime value alongside estimated lifetime. These describe different parts of the same calculation.

Why might my Customer LTV Calculator result differ from my records?

Separate revenue from cash receipts and cost from selling price. Check the denominator before comparing a margin with a markup. Differences in entered values, units or rounding can also change the comparison.

Can I compare two scenarios in Customer LTV Calculator?

Yes. Note your first estimated customer lifetime value, change average monthly revenue per customer or another input, and select Calculate again. Editing a field clears the old result so it is not mistaken for a new calculation.

Is Customer LTV Calculator free, and where are my inputs calculated?

This calculator is free to use without signing in. Its formula runs in your browser; calculator inputs are not sent to a calculation API. The inputs reset to the example values when you reset the form or start a fresh page.