👥Customer Lifetime Value Calculator

Calculate CLV to understand the long-term value of your customers.

Average Purchase Value ($)

Purchase Frequency (per year)

Customer Lifespan (years)

Customer Acquisition Cost ($)

About Customer Lifetime Value Calculator

Calculate the Customer Lifetime Value (CLV or LTV) of your average customer to understand how much revenue each customer relationship generates over time. CLV is one of the most important business metrics — it determines how much you can profitably spend to acquire a new customer and informs pricing, retention, and product decisions.

How to Use Customer Lifetime Value Calculator

1
Step 1
Enter your average order value, average purchase frequency per year, and average customer retention period in years.
2
Step 2
Optionally enter your profit margin percentage to calculate CLV in terms of profit rather than revenue.
3
Step 3
View your CLV and compare it against your customer acquisition cost to assess business health.

Common Use Cases

E-commerce businesses calculating how much to spend on Google and Facebook ads
SaaS companies computing CLV to set customer acquisition budgets
Marketing teams measuring the financial impact of retention and loyalty programs
Founders presenting CLV and cohort analysis to investors during fundraising

Frequently Asked Questions

How is CLV calculated?

CLV = Average Order Value × Purchase Frequency × Average Customer Lifespan. For example, a customer who spends $50 per purchase, buys 4 times per year, and stays for 3 years has a CLV of $600.

What is the relationship between CLV and CAC?

Customer Acquisition Cost (CAC) should ideally be less than 1/3 of CLV for a healthy business. A CLV:CAC ratio of at least 3:1 is generally considered sustainable.

Can I improve my CLV?

Yes. CLV increases by improving retention (longer customer lifespan), increasing purchase frequency through loyalty programs, and increasing average order value through upsells and cross-sells.