CUSTOMER ECONOMICS / FREE TOOL
Estimate revenue and contribution lifetime value using repeat frequency and customer lifespan.
Estimate revenue and contribution lifetime value using repeat frequency and customer lifespan.
Simple model only. Observed customer cohorts provide a stronger lifetime value estimate.
THE THINKING BEHIND THE NUMBER
This simple model multiplies average order value by expected purchases per year and customer lifespan. Cohort-based measurement is preferable once you have enough history.
Revenue LTV = AOV × annual purchase frequency × lifespan. Contribution LTV = revenue LTV × contribution margin.
For illustration, enter average order value ₹1,000, purchases per customer per year 2, expected customer lifespan in years 3, contribution margin 30%. With the remaining fields at their starting values, the contribution lifetime value is ₹1,800.00. Replace these sample figures with your own numbers before making a decision.
Repeat frequency and lifespan are assumptions; this is not a guaranteed future customer value.
Use the result alongside your store analytics, product costs and operating context. If the inputs are estimates, treat the output as an estimate too. Change one input at a time to understand what drives the result.
GO DEEPER
Purchase frequency, customer lifespan and contribution margin determine the simple LTV model. Actual cohorts may behave differently; compare first-time and repeat customers before raising acquisition budgets.
CLEAR ANSWERS
Enter your own business figures in the labelled fields. The result updates immediately and uses this calculation: Revenue LTV = AOV × annual purchase frequency × lifespan. Contribution LTV = revenue LTV × contribution margin.
Repeat frequency and lifespan are assumptions; this is not a guaranteed future customer value.
No. This calculator is free to use without an account. Its numeric inputs are processed in your browser.
PUT THE INSIGHT TO WORK
Tell us about your store. We’ll identify practical opportunities across the customer journey and help you choose the right next step.
