Lifetime Value (LTV): How to Unlock Hidden Profit & Scale Faster
Lifetime Value—LTV or LTGP when we speak profit—tells you exactly how much money one customer brings in over their entire relationship. Watch the 3-minute video, then plug your numbers into our brand-new LTV : CAC calculator.
What Is Lifetime Value?
Lifetime Value (LTV) is total gross profit a single customer generates before they churn.
Simple LTV Formula
LTV = Average Gross Profit per Order × Number of Repeat Purchases
Why LTV Matters More Than Revenue
- Sets Your Ad Budget — If a customer is worth £600 and CAC is £100, you can scale ads confidently.
- Guides Product Strategy — Focus on upsells that lift repeat purchases.
- Impresses Investors — High LTV shows predictable cashflow.
The Power Couple: LTV : CAC Ratio
A ratio above 3 : 1 means scalable profits; 5 : 1 is world-class.
Interactive LTV : CAC Calculator
The calculator below now includes an LTV field and real-time ratio read-out. Try it with your numbers.
LPV Lifetime Value (LTV) Calculator
Need your CAC first? Compute it on our CAC calculator page, then compare below.
How to Increase LTV Quickly
- Upsell / Cross-sell — add premium bundles.
- Subscription or VIP Club — predictable repeat sales.
- Email & SMS Retention — nurture buyers back.
FAQ
Is LTV based on revenue or profit?
Use gross profit (LTGP) to see real pay-back speed.
What’s a healthy LTV for e-commerce?
Varies, but if LTV : CAC > 3 : 1 and pay-back < 6 months, you’re strong.
Need Help Doubling Your LTV?
Apply for a free strategy call with LPV Agency. We help £3-50 M businesses lift LTV and slash CAC with conversion-driven video funnels.
