Customer LTV

What is a customer worth to you?

Enter order value, purchase frequency, retention, and margin. See LTV and whether your unit economics can support paid growth.

$413

net LTV

9.2:1 vs CAC

Customer economics

Lifetime value

Annual revenue

$300

Gross LTV

$750

Net LTV

$413

LTV:CAC

9.2:1

Freedom Coach™

LTV: $413 (net) · 9.2:1 vs CAC.

$300/yr × 2.5 yrs × 55% margin.

  • LTV:CAC over 5 — you're likely under-investing in growth. Spend more on acquisition.
  • Segment LTV by cohort — first-quarter customers often behave very differently from year-two.
  • Small retention wins compound: +5% retention often lifts LTV 25%+.

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Frequently asked questions

What is LTV?

Lifetime Value — total gross profit a customer generates from first purchase to churn. Drives how much you can spend to acquire them (CAC) while staying profitable.

LTV gross vs net?

Gross LTV = total revenue over lifetime. Net LTV = gross × gross margin. Always use net — revenue you can't keep isn't lifetime value.

Healthy LTV:CAC ratio?

3:1 minimum. Below 3:1, unit economics don't work at scale. Above 5:1, you're likely underspending on growth and leaving market share on the table.

How do I increase LTV?

Retention beats acquisition. A 5% retention lift often lifts LTV 25%+. Upsell existing customers, reduce churn causes, and build multi-year contracts where possible.

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