Estimated number of leads generated per month. A qualified lead is a “good” lead. One that has a high probability of closing into a customer for your business. For the calculator, enter the number of the leads that are currently coming through your website as good leads.

Estimated number of new customers per month. How many leads that you are able to close into customer.

Customer lifetime value (LTV) is the value of a new customer over the entire lifetime of your relationship with them. We want to look at the true value of a new customer, not just a one time purchase value. For example, if your average customer spends $500 per transaction, purchases twice per month, and has a 24 month relationship with your company, we can see that the value of adding a new customer is not the $500 transaction, but the entire value of that two year relationship. Calculate your LTV using this formula: [(Avg. Monthly Transactions X Avg. Order Value) Avg. Gross Margin] x Avg. Lifespan in Months.