The Lifetime Value Calculation Formula is a business tool used to determine the overall financial worth of customers based on their expected performance over their entire lifespan. By understanding a customer’s likely behaviors, costs and profits over time, businesses can make smart decisions about how to allocate resources and optimize cost-benefit analyses. By looking at lifetime value, entrepreneurs and executives can make better strategic decisions that maximize corporate profits and create more value for shareholders. With the right formula, held close to heart, businesses can unlock insights about what drives long-term successes in an ever-changing marketplace.