Customer Lifetime Value Calculator
How much is each customer worth to your business? This calculator shows CLV based on purchase frequency, average order value, and customer lifespan — so you know what to spend on acquisition.
Customer Lifetime Value Calculator
What is a customer worth over their entire relationship with you?
Each customer is worth $1,200 in revenue and $600 in profit. A healthy business spends no more than one third of CLV on acquisition — meaning your target CAC should be around $$400.
This is a simplified CLV model using average order value, purchase frequency, and customer lifespan. For subscription businesses, use: CLV = ARPU / Churn Rate. For more accuracy, factor in discount rate, retention curves, and varying order values over time.
Frequently Asked Questions
How do I calculate customer lifetime value?+
Simple CLV = Average order value × Purchase frequency × Customer lifespan (years). Detailed: CLV = (Average order × Margin) × (1 / Churn rate). Example: $100 AOV × 4 purchases/year × 3 years = $1,200 CLV. With 50% margin, profit CLV = $600.
What is the difference between CLV and LTV?+
They're the same metric — Customer Lifetime Value and Lifetime Value (LTV) are used interchangeably. Some distinguish: CLV = total revenue, LTV = total profit. Both are useful. The profit-based version (LTV) is more important for business decisions.
How do I increase customer lifetime value?+
Four levers: (1) Increase purchase frequency (email marketing, loyalty programs). (2) Increase average order (upsells, bundles). (3) Increase lifespan (better service, community). (4) Reduce churn (onboarding, support). A 5% increase in retention can increase CLV by 25-95%.
How do I calculate customer lifetime value?
Simple CLV = Average order value × Purchase frequency × Customer lifespan (years). Detailed: CLV = (Average order × Margin) × (1 / Churn rate). Example: $100 AOV × 4 purchases/year × 3 years = $1,200 CLV. With 50% margin, profit CLV = $600.