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Customer Lifetime Value Calculator

Estimate how much profit an average customer brings over the whole relationship.

How it works Report a problem

Customer Lifetime Value

Calculate the total revenue a customer generates over their relationship with you

Customer Lifetime Value (CLV)
$0
Over the customer relationship
Annual Revenue
$0
Total Revenue
$0
Net Profit
$0
CLV = Avg Purchase × Frequency × Lifespan
Net CLV = CLV × Profit Margin %
Cumulative Customer Value Over Time

About the Customer Lifetime Value Calculator

Estimate how much profit an average customer brings over the whole relationship.

How to use the Customer Lifetime Value Calculator

  1. Enter the Average Purchase Value ($), Purchase Frequency (per year), Customer Lifespan (years) and Profit Margin (%).
  2. Press Calculate Lifetime Value.

Formula and method

CLV = purchase value × frequency × lifespan × margin

Worked example

$50 purchases, 4 times a year, for 3 years at a 40% margin give $240 of profit per customer.

Tips

  • Your customer acquisition cost should be well below CLV.

Frequently asked questions

Why does CLV matter?
It shows how much you can afford to spend to win a customer.