Customer Lifetime Value Calculator
Estimate customer lifetime value from order value, purchase frequency, and customer lifespan.
How it works
Customer lifetime value is the total revenue a typical customer brings over the whole relationship, not just the first sale. It reframes marketing spend around the long game.
The tool multiplies average order value by how often a customer buys per year and by how many years they stay, showing the intermediate numbers so the logic is transparent.
Knowing CLV tells you how much you can afford to spend acquiring a customer. If each is worth 600 dollars over time, paying 100 to win one is an easy decision.
Frequently asked questions
How is customer lifetime value calculated?
Multiply average order value by purchase frequency per year by the average number of years a customer stays. That gives the total revenue per customer.
Why does CLV matter?
It sets a ceiling on what you can sensibly spend to acquire a customer. Spending less than CLV to win a customer is the foundation of profitable growth.
Should I use revenue or profit for CLV?
This uses revenue for simplicity. For a sharper picture, multiply the result by your profit margin to get the lifetime profit per customer.