Knowing LTV tells you how much you can afford to spend winning and keeping a customer — and how much working capital growth ties up.

No — it's a free illustration. Your actual Creditcorp offer depends on an assessment of your company.

Customer lifetime value calculator — Calculators

How to use it

Enter your figures above — the result updates instantly and nothing leaves your browser. Results are illustrative, not a quote or credit decision.

How to interpret the result

The output is a rough ceiling on what a typical customer relationship is worth in revenue terms, not profit. It hasn't stripped out the cost of serving that customer — materials, staff time, delivery, support, or any discounts extended to win the order — so it will sit above the true bottom-line contribution of an average account. Treat it as a starting reference point for conversations about acquisition spend and retention effort, rather than a number to plan cash flow around directly.

It's also only as good as the inputs. Average order value and order frequency drawn from a mixed customer base can hide a lot of variation — a handful of larger or more frequent buyers can pull the average well above what a typical new customer will actually deliver. Where a business has distinct customer segments, running the calculation separately for each tends to give a more useful picture than a single blended figure.

Limitations and good practice

This is a revenue-side model only: it multiplies value, frequency and assumed lifespan together, with no adjustment for customers who churn earlier than expected, seasonal buying patterns, or the possibility that spend per order changes as the relationship matures. It also assumes the average customer lifespan you enter is a reasonable estimate — for a newer company without much retention history, this figure is often more of an informed guess than a measured fact, so it's worth revisiting once actual data builds up.

Good practice is to pair this illustration with a look at gross margin by customer segment, and to recheck the inputs periodically rather than treating a single calculation as fixed. Businesses using the figure to inform decisions on break-even planning or acquisition budgets should also read it alongside their working capital position, since winning more customers faster than they can be serviced can strain cash even when the underlying lifetime value looks healthy.