Free calculator
Client Lifetime Value (LTV) Calculator
Lifetime value is everything one client pays you, from the first offer to the last upsell. Enter your numbers to see your LTV and how it compares with what it costs to win a client.
Back-end revenue: the average a client spends on upsells, resells and extensions. Put 0 if you sell nothing after the first offer.
- First offer$5.0K
- Back end+$1.5K
- Profit per client after CAC$5.0K
Estimate based on your inputs.
How to calculate client lifetime value
For a program paid upfront, the first offer is the price. For a monthly offer, it is the monthly price times the months a client stays. Back-end revenue is what a client spends after that on upsells, resells and extensions. LTV to CAC divides lifetime value by the cost to win a client.
Example
- A $5,000 program, paid upfront.
- Clients spend $1,500 on average on the back end.
- LTV = $5,000 + $1,500 = $6,500.
- It costs $1,500 to win a client, so LTV to CAC is 4.3 : 1.
Questions
What is a good LTV to CAC ratio for a coaching business?+
3 : 1 or better is the common benchmark: each client brings in at least three times what it cost to win them. Below 1 : 1 you lose money on every client before delivery costs.
How do I increase client lifetime value?+
Get more clients to the result, then offer the next step: an upsell, a resell or an extension. Clients who win buy again, and that revenue carries no ad cost, so it raises LTV without raising CAC.
What is the difference between LTV and CLV?+
None in practice. Lifetime value (LTV), client lifetime value and customer lifetime value (CLV) all mean the total a client pays you over the whole relationship.
More tools: Upsell Calculator · Client Retention Rate Calculator · Churn to LTV Calculator
