Customer Lifetime Value Calculator

How to Use the CLV Calculator

Our Customer Lifetime Value (CLV) calculator helps you understand the total revenue you can reasonably expect from a single customer account throughout your business relationship.

1. Average Purchase Value ($): Enter the average amount a customer spends in one transaction. (Total Revenue / Total Orders)
2. Purchase Frequency (per year): Enter the average number of times a customer makes a purchase in one year. (Total Orders / Total Unique Customers)
3. Average Customer Lifespan (years): Enter the average number of years a customer continues to purchase from you.

Click "Calculate CLV" to see the results. The tool will show you the average value of a customer per year and their total estimated lifetime value.

Understanding CLV (Customer Lifetime Value)

Customer Value (per year): This metric shows how much revenue a single customer generates, on average, in a 12-month period.
Formula: Average Purchase Value * Purchase Frequency

Customer Lifetime Value (CLV): This is the total projected revenue a customer will generate for your business during their entire "lifetime" as a paying customer.
Formula: Customer Value (per year) * Average Customer Lifespan

Why is CLV Important for ROI?

CLV is one of the most critical metrics for measuring your marketing ROI. It directly answers the question: "How much can I afford to spend to acquire a new customer?"

For example, if your average CLV is $600, you know that spending $100 on marketing to acquire that customer (your Customer Acquisition Cost, or CAC) is highly profitable. If your CLV is only $50, spending $100 to acquire them is a losing strategy.

• Better Marketing Decisions: Focus your budget on acquiring high-value customers.
• Improve Retention: CLV shows the immense value of keeping existing customers happy. It's almost always cheaper to retain a customer than to acquire a new one.
• Measure Long-Term Profitability: Instead of just measuring the profit from the *first* sale, CLV helps you measure the long-term health and profitability of your business.