Free tool
Customer Lifetime Value Calculator
Almost every marketing decision — what to bid, what to spend on reviews, whether a £495 retainer is cheap or dear — quietly depends on one number: what a customer is worth over their lifetime with you. This calculator works it out both ways: by average retention, or from your churn rate.
Revenue LTV lies; profit LTV decides
The LTV that matters for spending decisions is gross-profit LTV — what a customer contributes after the direct cost of serving them. A £720 revenue LTV at 50% margin is £360 of actual capacity to fund acquisition and profit. Compare marketing costs against that number, never the revenue one.
The churn model suits memberships and retainers: at 20% annual churn the average customer stays five years (1 ÷ 0.20), so annual profit × 5. Both models assume the future resembles the past — sensible for planning, not gospel.
Common questions
Why does LTV change what I can spend on marketing?
Because a business that knows a customer is worth £360 in profit can cheerfully pay £100 to acquire one, while a competitor pricing acquisition against a single £60 sale cannot compete for the same attention. Knowing your LTV is a bidding advantage in itself.
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