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Customer Lifetime Value Calculator
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
$0
CLV = Avg Purchase × Frequency × Lifespan
Net CLV = CLV × Profit Margin %
Net CLV = CLV × Profit Margin %
Cumulative Customer Value Over Time
About the Customer Lifetime Value Calculator
Estimate how much profit an average customer brings over the whole relationship.
How to use the Customer Lifetime Value Calculator
- Enter the Average Purchase Value ($), Purchase Frequency (per year), Customer Lifespan (years) and Profit Margin (%).
- 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
It shows how much you can afford to spend to win a customer.