Customer Lifetime Value (LTV) is the total gross profit one customer generates before they stop buying. LTV answers the question that decides whether your ads can scale: how much can I actually spend to acquire a customer? Enter your repeat-purchase numbers — or estimates — and see LTV, payback period and your safe acquisition ceiling.
How many years a customer keeps buying. 1 = one-off purchases.
For one-off purchase businesses (many Singapore service businesses), frequency is 1 and lifespan is 1 — LTV is simply one order's gross profit. In that case, judge ads purely on first-order margin: use the Break-Even ROAS Calculator.
Digimau reviews existing ad accounts, funnels and metrics free — including whether your LTV targets are realistic for Singapore in 2026. Reply times are usually under an hour on weekdays.
LTV is the total gross profit a customer generates across their whole relationship with your business — average order value × purchases per year × gross margin × customer lifespan.
3:1 is the classic healthy benchmark — S$3 of gross profit per S$1 of acquisition cost. Below 2:1, acquisition is unprofitable at scale; above 4:1, you are likely under-investing in growth.
Payback period is how long a customer takes to generate enough gross profit to cover their acquisition cost. Under 3 months supports aggressive ad scaling; over 12 months means growth will be cash-hungry.
Increase purchase frequency (repeat-purchase offers, subscriptions), raise order value (bundles, upsells), extend lifespan (retention programmes), or improve margin (pricing, cheaper delivery). Small changes in frequency compound heavily in LTV.
Yes — no email required. Enter order value, frequency, margin and lifespan to see LTV, your max acquisition spend at a 3:1 target, and payback period.
