Customer lifetime value calculator (CLV)
Shows what an average customer brings in over the whole relationship, so you know how much you can spend to win one.
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Processing and privacy: The result is calculated inside your browser and your data is not sent to any server.
How to use it
- Enter average order value, purchases per year, average years retained and gross margin.
- The result appears straight away and updates as you edit.
- Copy the result, or copy a link that keeps the same values to share it.
How it is calculated
Annual value = average order value × purchases per year. Revenue CLV = annual value × years retained. Gross profit CLV = revenue CLV × gross margin ÷ 100.
Example
Inputs: Average order value = 50, Purchases per year = 4, Average years retained = 3, Gross margin = 40 %. Result: Lifetime value (revenue): 600.00; Lifetime value (gross profit): 240.00; Revenue per customer per year: 200.00.
Limits and caveats
- A simple model that assumes order value and frequency stay the same and does not discount future money.
- The result is an average; some customers are worth far more than others.
Questions about this tool
Is CLV the same as LTV?
They name nearly the same metric. Some teams use one for revenue and the other for profit, so this tool shows both.
Which figure should I compare with CAC?
The gross profit figure, because revenue includes the cost of goods that you do not keep.
How do I estimate years retained?
From your data: the average time between first and last purchase of past customers, or 1 ÷ annual churn rate if you know it.