---
title: "Calculating LTGP"
description: "Back-of-napkin lifetime gross profit."
canonical: https://tomsharman.com/bookshelf/100m-lost-chapters/calculating-ltgp/
updated: 2026-11-03
---

# Calculating LTGP

> Back-of-napkin lifetime gross profit.

Alex Hormozi's framework, from $100M Lost Chapters, pp. 46 to 71.

Framework 5 of 14 from [$100M Lost Chapters](https://tomsharman.com/bookshelf/100m-lost-chapters/index.md) by Alex Hormozi. Category: Offers and pricing.

## The steps

1. **Find gross profit.** Subtract the cost of delivery from the price, per thing sold.
2. **Find transactions or churn.** Average lifetime transactions, or churn as people lost divided by the starting count.
3. **Combine.** Multiply gross profit by transactions, or divide gross profit by churn.

## Where it comes from

From chapter: Section B: The Expensive Customer Problem, pp. 46–71

## The animation

24 seconds, 4:5, no sound.

- MP4: https://tomsharman-downloads-006143767029.s3.eu-north-1.amazonaws.com/downloads/bookshelf/100m-lost-chapters/calculating-ltgp.mp4
- MP4, dark: https://tomsharman-downloads-006143767029.s3.eu-north-1.amazonaws.com/downloads/bookshelf/100m-lost-chapters/calculating-ltgp-dark.mp4
- Still: https://tomsharman-downloads-006143767029.s3.eu-north-1.amazonaws.com/downloads/bookshelf/100m-lost-chapters/calculating-ltgp.png
- Still, dark: https://tomsharman-downloads-006143767029.s3.eu-north-1.amazonaws.com/downloads/bookshelf/100m-lost-chapters/calculating-ltgp-dark.png