# How To Calculate LTV in AirTable | Arithmix

Learn how to calculate the lifetime value (LTV) of your customers using AirTable with our step-by-step guide. Maximize your profits and make data-driven decisions with this essential tool for any business.

If you're running a business, you've probably heard the term "LTV" thrown around. LTV stands for "lifetime value," and it's a crucial metric for understanding the long-term profitability of your customers. In this article, we'll explain what LTV is, when it's valuable to calculate, and how you can calculate it using AirTable.

## What Is LTV?

LTV is a measure of how much revenue a customer will generate for your business over the course of their lifetime. This includes all of the purchases they make from your business, as well as any recurring revenue streams (like subscriptions or service contracts).

Calculating LTV is important because it helps you understand the true value of your customers. If you know how much revenue a customer is likely to generate over time, you can make more informed decisions about how much you're willing to spend to acquire and retain that customer.

## When Is It Valuable To Calculate LTV?

Calculating LTV is valuable in a variety of situations. For example:

• If you're trying to decide how much to spend on customer acquisition, knowing the LTV of your customers can help you determine how much you can afford to spend to acquire a new customer.

## How To Calculate LTV Using AirTable

Calculating LTV using AirTable is relatively straightforward. Here's how to do it:

1. First, you'll need to create a table in AirTable that includes all of your customer data. This should include information like their name, email address, purchase history, and any recurring revenue streams.
2. Next, you'll need to calculate the average revenue per customer. To do this, you'll need to divide your total revenue by the number of customers you have. For example, if you have 100 customers and your total revenue is \$10,000, your average revenue per customer is \$100.
3. Once you have your average revenue per customer, you can use it to calculate your LTV. To do this, you'll need to multiply your average revenue per customer by the average lifespan of your customers. For example, if your average customer lifespan is 3 years, and your average revenue per customer is \$100, your LTV would be \$300.

## How Do You Calculate LTV in AirTable

AirTable itself isn’t naturally geared towards letting you calculate complex metrics like LTV. As an alternative, teams typically use products like Arithmix to import data from AirTable and build out dashboards.

## What is Arithmix?

Arithmix is the next generation spreadsheet - a collaborative, web-based platform for working with numbers that’s powerful yet easy to use. With Arithmix you can import data from systems like AirTable, combine it with data from other systems, and create calculations like LTV.

In Arithmix, data is organized into Tables and referenced by name, not by cell location like a spreadsheet, simplifying calculation creation. Data and calculations can be shared with others and re-used like building blocks, vastly streamlining analysis, model building, and reporting in a highly scalable and easy to maintain platform. Data can be edited, categorized (by dimensions) and freely pivoted. Calculations are automatically copied across a dimension - eliminating copy and paste of formulas.