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Calculator Tools

Customer Lifetime Value Calculator

Find out what a customer is worth to your business over the whole relationship. Enter the average order value, how often a customer buys each year, how many years customers stay and your gross margin. The calculator shows lifetime revenue and lifetime gross profit, and – with a discount rate – the profit in today’s money. Add your customer acquisition cost to see the CLV to CAC ratio and how many months it takes to earn the acquisition cost back.

  • Runs in your browser
  • No sign-up
  • Free to use
years
%
%

Optional: values future profit in today’s money.

How to use Customer Lifetime Value Calculator

  1. Enter order value, purchases per year and lifespan.
  2. Add your gross margin.
  3. Optionally add a discount rate and CAC.
  4. Read CLV, the ratio and payback.

Customer Lifetime Value Calculator features

Revenue and profit CLV

Both shown.

Discounting

Future profit in today’s money.

CLV : CAC

With a health rating.

Payback

Months to recover CAC.

Formula shown

Every result explains how it was calculated.

Any currency

Choose from 30+ currencies; amounts are formatted for it.

When to use Customer Lifetime Value Calculator

  • Deciding how much to spend on acquisition.
  • Comparing customer segments or channels.
  • Building a business case for retention work.
  • Investor and board reporting.

Customer Lifetime Value Calculator FAQ

Why use margin instead of revenue?

Revenue overstates value: a customer who spends 1,000 on products that cost 800 is worth 200 of profit. Profit-based CLV is the figure to compare with acquisition cost.

What is a good CLV to CAC ratio?

Around 3:1 is a common benchmark. Below 1:1 each customer loses money; far above 5:1 may mean you could grow faster by spending more on acquisition.

What discount rate should I use?

Your cost of capital or a rate that reflects risk, often 8–12%. Use 0 to ignore the time value of money.

How do I estimate lifespan?

One divided by the yearly churn rate gives the average lifespan: 25% churn means about four years.

Customer Acquisition Cost Calculator Measure what it costs to win one new customer. Add up marketing spend, sales spend… CAC Payback Calculator Find out how long a new customer takes to pay for the cost of winning them. Enter… Churn Rate Calculator Measure how many customers you lose. Enter the customers at the start of a period… Average Order Value Calculator Find out how much customers spend per order and where to grow it. Enter revenue…

Using CLV well

CLV turns customer behaviour into one number you can compare with what it costs to win a customer. It is most useful by segment: customers from different channels, plans or countries often have very different values.

Averages hide spread. A few loyal customers can lift the average a lot, so check the median order value and retention of typical customers as well.

Treat the result as a planning estimate. The inputs are assumptions about the future, so try a cautious and an optimistic set of numbers and plan with the range rather than a single figure.

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