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Customer LTV Calculator.
Your customer
Lifetime value
Customer LTV — gross
$800
Total revenue you'll book from one customer over their relationship.
Customer LTV — contribution margin
$440
This is the number to compare against CAC. Anything else lies to you.
Annual revenue per customer
$320
Annual contribution per customer
$176
Why contribution margin LTV
Gross LTV makes everyone feel better but only contribution-margin LTV is the dollar amount you can spend acquiring a customer and still be profitable. If you've ever seen an agency quote "LTV:CAC of 5×" against gross — that's the move. We never report it that way.
At 55% margin and a 2.5-year horizon, your usable LTV for paid acquisition decisions is $440.
Your numbers, not estimates
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