LTV Calculator
Calculate Customer Lifetime Value (LTV) based on average order value, purchase frequency, and customer lifespan. Optionally compute your LTV:CAC ratio for growth planning.
API Access
Use this tool programmatically:
curl -X POST https://kappax.io/api/tools/ltv-calculator \
-H "Content-Type: application/json" \
-d '{ ... }'See full API documentation for parameters and response format.
Frequently asked questions
What is Customer Lifetime Value (LTV)?
LTV is the total revenue a business can expect from a single customer over the entire duration of their relationship. It is calculated as Average Order Value × Purchase Frequency × Customer Lifespan.
What is a good LTV:CAC ratio?
A healthy LTV:CAC ratio is 3:1 or higher, meaning each customer generates 3x more revenue than it costs to acquire them. A ratio of 5:1 or above is considered excellent.
How can I improve my LTV?
Improve LTV by increasing average order value through upselling and cross-selling, boosting purchase frequency with loyalty programs and email marketing, and extending customer lifespan with excellent support and retention strategies.
Why is LTV important for growth planning?
LTV helps determine how much you can afford to spend acquiring customers (CAC). If your LTV is $300, spending $100 on acquisition is sustainable. It is the foundation of unit economics and sustainable growth.
