What is a Lead Value & Lifetime Value (LTV) Calculator?
The Lead Value & Lifetime Value (LTV) Calculator helps you measure how much each lead or customer is worth to your business over time.
By entering your average conversion rate, deal value, and repeat purchase frequency, this tool calculates both lead value and customer lifetime value (LTV) — key metrics for evaluating marketing ROI.
It’s an essential tool for marketers, business owners, and advertisers who want to optimize their campaigns and understand how much they can afford to spend on acquiring a lead or customer.
Why LTV and Lead Value Matter
Knowing your lead value and LTV helps you make smarter decisions in marketing and budgeting.
When you understand how much revenue each customer brings in over time, you can confidently determine how much to invest in Google Ads, Meta Ads, SEO, or other marketing channels.
Key insights include:
- Identifying profitable lead sources
- Optimizing ad budgets for better ROI
- Setting target cost per lead (CPL)
- Planning customer retention strategies
- Forecasting long-term revenue growth
How to Use the Lead Value & LTV Calculator
- Enter your average lead-to-customer conversion rate (%).
- Enter your average deal value or sale amount.
- Specify your customer retention rate or repeat purchase frequency.
- Enter your average customer lifespan (in months or years).
- Click Calculate to get:
- Lead Value (₹ or $ per lead)
- Customer Lifetime Value (LTV)
Example:
- Conversion Rate: 10%
- Average Sale Value: ₹5,000
- Average Repeat Purchases: 3
- Result → Lead Value = ₹500 | LTV = ₹15,000
Benefits of Using This Tool
- 💰 Instantly calculate your lead and customer lifetime value
- 📈 Understand how much to spend per lead or acquisition
- 🧠 Make data-driven marketing and sales decisions
- ⚙️ Simple, fast, and accurate calculations
- 🚀 Ideal for PPC, SEO, and performance marketers
Formula Used
Lead Value Formula:
Lead Value = Conversion Rate × Average Sale Value
Customer Lifetime Value (LTV) Formula:
LTV = Average Sale Value × Average Purchases × Customer Lifespan
(You can adjust formulas based on your business model — subscription, one-time, or repeat purchase.)
Example Use Cases
- Marketers: Determine profitable CPL and CPA targets.
- Business Owners: Plan budgets for paid campaigns.
- Agencies: Show clients ROI projections.
- Sales Teams: Forecast revenue per customer segment.
- Freelancers: Estimate client retention and earning potential.
FAQs
1. What’s the difference between Lead Value and LTV?
Lead Value estimates the worth of each marketing lead, while LTV represents the total revenue generated by one customer over their lifetime.
2. Why should I calculate LTV?
It helps you decide how much you can safely invest in acquiring and retaining customers profitably.
3. Can I use this for both products and services?
Yes, the tool works for all business types — eCommerce, services, B2B, or SaaS.
4. How accurate are the results?
The tool provides reliable estimates based on your input data. Use real numbers from analytics or CRM systems for the best results.
5. Is this tool free?
Yes, it’s completely free to use — no registration or payment required.
Disclaimer
This tool is for estimation and educational purposes only.
Actual values may vary based on business models, customer behavior, and market conditions. Always use accurate internal data for financial decisions.