LTV calculator
Estimate how much a client is worth over the whole relationship.
Customer lifetime value calculator
Plug in your numbers - it updates as you type.
What is customer lifetime value (ltv)?
The total revenue an agency expects to earn from a client over the whole relationship. A core input for how much you can afford to spend winning clients.
For example, a client on a $3,000 retainer who stays for an average of three years is worth roughly $108,000 in lifetime value. That figure tells you how much you can sensibly invest in winning and keeping a client like them.
Why it matters to agencies: LTV reframes a client from a monthly invoice into a long-term asset, and pairs with acquisition cost to show whether growth is actually profitable. Lifting LTV - through lower churn or expansion - compounds an agency's value faster than almost anything else.
LTV = average monthly revenue per client × average client lifespan in months
Lower churn lengthens the lifespan, so it raises LTV directly.
Aim for an LTV at least 3x your acquisition cost; lifting it through lower churn or expansion compounds an agency's value faster than almost anything else.
What is customer lifetime value (LTV)?
The total revenue an agency expects to earn from a client over the whole relationship. A core input for how much you can afford to spend winning clients.
How do you calculate customer lifetime value?
Multiply the average monthly revenue per client by how many months a client stays on average; lower churn raises both.
What is a good LTV to CAC ratio?
A common benchmark is an LTV at least three times the cost to acquire the client - below that, growth tends to lose money.
How do you increase customer lifetime value?
Reduce churn, expand accounts through upsell, and raise prices toward the value delivered - each lengthens or deepens the relationship.
Read the full definition: Customer lifetime value (LTV) in the agency glossary
See how Forge builds it: time tracking software for agencies
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