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Free customer lifetime value calculator
Find out what an average customer is worth over time, in revenue and in gross profit.
No lifespan data? Use 1 ÷ yearly churn rate. 25% churn gives about 4 years.
Result
0Revenue CLV
0Profit CLV
0CLV to CAC
Results are estimates from the averages you enter.
The free customer lifetime value calculator runs in your browser, needs no sign-up and never sends what you type anywhere.
Quick answer
A customer lifetime value calculator multiplies average order value by purchases per year and customer lifespan in years, then applies your gross margin. A $60 order, 4 times a year for 3 years, is $720 in revenue and $360 profit at 50% margin. Keep customer acquisition cost well below that profit figure.
What is a customer lifetime value calculator?
A customer lifetime value calculator is a tool that estimates the total value one customer brings during the relationship. CLV (revenue) = average order value × purchases per year × lifespan in years; CLV (profit) = revenue CLV × gross margin.
How do you use the Customer Lifetime Value Calculator?
- Enter average order value: total revenue ÷ number of orders for a recent period.
- Enter how many times a typical customer buys per year.
- Enter how many years a customer usually stays, or use 1 ÷ yearly churn rate.
- Enter gross margin and, optionally, your customer acquisition cost (CAC).
- Read revenue CLV, profit CLV, the CLV to CAC ratio and the payback time.
How do you calculate customer lifetime value?
Multiply average order value by purchases per year and by lifespan in years, then multiply by gross margin for a profit view. For example, $60 × 4 × 3 = $720 revenue CLV, and at a 50% margin that is $360 of gross profit per customer. Use averages from the same period and customer group.
What is the difference between CLV and LTV?
CLV (customer lifetime value) and LTV (lifetime value) usually mean the same thing: the value of a customer over the whole relationship. Google Analytics uses the term lifetime value in its User lifetime report, which tracks revenue per user over time.
What is a good CLV to CAC ratio?
A ratio above 1 means a customer's gross profit pays back what you spent to win them; below 1 you lose money on each new customer. How high is enough depends on your other costs and cash flow, so compare the ratio across channels and over time rather than chasing one universal target.
Quick reference
| Business example | Inputs | Revenue CLV |
|---|---|---|
| Coffee subscription | $25 × 12 per year × 2 years | $600 |
| Online fashion store | $60 × 4 per year × 3 years | $720 |
| Hair salon | $45 × 6 per year × 4 years | $1,080 |
| SaaS tool | $49 × 12 per year × 2.5 years | $1,470 |
| Dental practice | $120 × 2 per year × 6 years | $1,440 |
Worked example
Example
Example: an online store has a $60 average order value, customers buy 4 times a year and stay about 3 years. Revenue CLV = 60 × 4 × 3 = $720. With a 50% gross margin, profit CLV is $360, or $10 of gross profit per month. If Google Ads and Meta Ads cost $80 per new customer, the CLV to CAC ratio is 4.5 and the $80 is paid back after 8 months.
Learn more
Frequently asked questions
How do I find average purchase frequency?
Divide the number of orders in a year by the number of unique customers who ordered that year. For example, 8,000 orders from 2,000 customers is 4 purchases per customer per year. Use your store, CRM or analytics data for the same period.
How do I estimate customer lifespan?
A simple estimate is 1 ÷ yearly churn rate. If 25% of customers stop buying each year, the average lifespan is about 4 years. For a young business without history, use a cautious guess and update it as real data comes in.
Should CLV use revenue or profit?
Use profit when you compare CLV with acquisition cost, because revenue ignores the cost of products, delivery and fees. Revenue CLV is still useful for forecasting sales, but profit CLV tells you how much you can safely spend to win a customer.
What is CAC?
CAC, customer acquisition cost, is your total sales and marketing spend for a period divided by the number of new customers won in that period. Include ad spend, agency or freelancer fees and tools, so the comparison with CLV is honest.
How can I increase customer lifetime value?
Raise order value with bundles and relevant add ons, raise frequency with follow up emails and reminders, and extend lifespan with better service and onboarding. Small gains in each multiply together, so a 10% lift in all three adds about 33% to CLV.
Is this CLV calculator accurate?
It gives a simple historic estimate, which is fine for planning budgets and comparing channels. It ignores discounting of future cash and changes in behaviour over time, so treat results as estimates and recheck them with real cohort data.
Sources
Facts checked against these official pages. Read how I check facts in my editorial policy.
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