Estimate customer LTV using three simplified methods. Results are illustrative only — actual customer value depends on many variables these models cannot capture.
Simple · Subscription · Discounted cash flow · Retention & margin impact illustration
| Churn Scenario | Est. Lifespan | Est. LTV | vs Current (est.) |
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It applies three simplified LTV models to your inputs — Simple (order value × frequency × lifespan), Subscription (MRR ÷ churn), and Discounted Cash Flow. All results are illustrative estimates. Actual customer economics depend on many variables these models cannot capture.
Enter your own real figures — average order value from your data, actual churn rate from your platform, your real gross margin. The output quality depends entirely on input accuracy. Do not enter assumed values and treat the output as fact. This is a directional aid, not a financial analysis.
These models assume constant margins, flat churn, and linear revenue — real businesses are more complex. LTV is highly sensitive to churn rate assumptions. The DCF model's accuracy diminishes sharply over longer projection periods. For real LTV analysis, use cohort data and consult a qualified analyst.
Customer Lifetime Value (LTV) is a concept used to estimate the total value a business might expect from a customer over the duration of their relationship. It is a widely used metric in marketing and business planning — but it is also frequently misunderstood and misused. The figures produced by LTV calculations are projections based on assumptions, not guaranteed revenue. This page provides general educational context only.
Each of the three methods applies different assumptions and is suited to different business models. All produce estimates that may differ significantly from actual outcomes:
LTV calculations depend on assumptions that are difficult to validate and subject to change:
Payment processing fees are a direct cost on every transaction that reduces gross margin. For businesses that accept card payments, including your actual processing rate in your gross margin figure will produce a more realistic LTV estimate. This is a general observation — the specific impact on your business depends on your actual fees, transaction mix, and cost structure. For an actual processing rate assessment, contact QuadraPay for a no-obligation quote.
We work with 45+ acquiring partners across 32 countries to help merchants find processing solutions appropriate for their business type, volume, and risk profile.
Estimation Tool Only — Not Financial Advice. The QuadraPay Customer Lifetime Value Estimator and all other calculator tools published on this website (collectively, "the Tools") are provided solely for general informational and illustrative purposes. All LTV figures, retention impact estimates, margin illustrations, processing rate comparisons, and any other outputs are approximations only, derived from simplified mathematical models applied to the values you enter. They should not be treated as accurate representations of actual customer economics, financial projections, business valuations, or outcomes of any kind.
No Accuracy Guarantee. QuadraPay makes no representation, warranty, or guarantee — express or implied — that the outputs of the Tools are accurate, complete, current, or applicable to your specific business, customer base, industry, or market conditions. Actual customer lifetime value is determined by complex, real-world factors that these simplified models cannot replicate, including non-linear churn, revenue expansion and contraction, cohort-level variation, competitive dynamics, product changes, and many others.
Not Financial, Legal, Marketing, or Professional Advice. Nothing in the Tools or on this website constitutes financial advice, investment advice, accounting advice, legal advice, tax advice, marketing advice, or any other form of professional advice regulated under any applicable law. QuadraPay is a merchant services consultancy and payment solutions reseller — not a licensed financial adviser, investment manager, accountant, solicitor, or any other regulated professional. Always consult qualified independent professionals before making any significant business, financial, pricing, or investment decisions.
FTC Compliance Notice. In accordance with FTC guidelines: (a) QuadraPay does not guarantee any specific financial outcome, processing rate, or business result from use of this tool or from engaging QuadraPay's services; (b) any reference to potential savings or improvements from processing rate changes are hypothetical illustrations only, not typical results — actual results vary significantly depending on business-specific factors; (c) QuadraPay is a reseller that connects merchants to third-party processors and does not control, set, or guarantee the rates offered by those third parties.
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Reseller Disclosure. QuadraPay operates as a merchant services consultancy and payment solutions reseller. When QuadraPay refers a merchant to an acquiring partner, that partner — not QuadraPay — provides the payment processing service, sets the applicable rates, and enters into a direct agreement with the merchant. QuadraPay is not a party to processing agreements between merchants and acquiring banks. Any terms, rates, and conditions offered are solely those of the relevant acquiring partner and are subject to their underwriting criteria.
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