Lifetime Value

What is one customer actually worth?

Three numbers you already know. Most owners under-estimate this by several times.

Lifetime Value Calculator calculator

Your numbers

SAR

Your result

Lifespan
Lifetime value
Gross-profit LTV
Max CAC (3:1)

Where the value goes

Revenue LTVGross-profit LTVMax CAC (3:1)

What these numbers mean

Almost every owner answers “what is a customer worth?” with the monthly price. The true figure is usually many times larger — and under-estimating it is one of the most common reasons a sound business refuses to invest in its own growth.

Customer lifespan

1 ÷ churn. At 13.2% monthly churn the average customer stays about 7.6 months — so you are paid roughly 7.6 times, not once.

Lifetime value (LTV)

Monthly price ÷ churn. The total a customer pays you across their whole life, not per month.

Gross-profit LTV

LTV × gross margin. The part you actually keep after delivering. This is the figure that matters — you cannot spend revenue.

Max CAC at 3:1

Gross-profit LTV ÷ 3. Healthy businesses keep at least a 3:1 return on acquisition, so this is your ceiling on cost per customer.

Why churn dominates

Because LTV divides by it, a small change in churn moves value enormously. Halving churn doubles what every customer is worth.

Margin is the multiplier

Two businesses with identical revenue but 40% vs 90% margin can afford wildly different ad budgets. Margin decides how much of LTV is real.