What is one customer actually worth?
Three numbers you already know — most owners under-estimate this by several times
Lifetime Value Calculator calculator
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Where the value goes
Disclaimer: Results are estimates provided for informational purposes only. They do not guarantee revenue, profit or growth and do not constitute financial, investment or legal advice. Results depend on assumptions and available inputs, and you remain responsible for your business decisions.
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.