LTV
LTV. Calculate with Average order revenue, Purchases per year, Retention years; review the formula, units and worked example.
Values and units
Runs in this browserResult
Set the inputs and run the tool to view the result.
How to use LTV
- Review the populated example and the input units, then replace it with your data.
- Calculate with Average order revenue, Purchases per year, Retention years; review the formula, units and worked example.
- Run the tool, inspect the result, then copy or download what you need.
Method and scope
aov*frequency*years*margin/100
Formula
aov*frequency*years*margin/100- aov
- Average order revenue
- frequency
- Purchases per year
- years
- Retention years
- margin
- Gross margin (%)
Numbers retain the tool's existing precision. Keep monetary inputs in the same currency and enter percentages as percentage values.
Estimates depend on the inputs and the stated formula. Confirm contractual costs, carrier rules and applicable taxes separately.
Input example
Average order revenue: 80 Purchases per year: 4 Retention years: 3 Gross margin (%): 40
Expected result: 384 currency
Questions and result checks
How does LTV determine the result?
aov*frequency*years*margin/100
Formula
aov*frequency*years*margin/100- aov
- Average order revenue
- frequency
- Purchases per year
- years
- Retention years
- margin
- Gross margin (%)
Numbers retain the tool's existing precision. Keep monetary inputs in the same currency and enter percentages as percentage values.
What should I check before processing?
Estimates depend on the inputs and the stated formula. Confirm contractual costs, carrier rules and applicable taxes separately.
How can I verify the output?
Use the supplied example as a check, then compare important results with the original source or business document.
Average order revenue: 80 Purchases per year: 4 Retention years: 3 Gross margin (%): 40
Expected result: 384 currency
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