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Customer Lifetime Value Calculator

Calculate how much revenue a typical customer will generate for your business over their entire relationship with you.

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The average amount a customer spends per purchase

How many times a customer purchases from you per year

How many years a customer typically continues buying from you

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How much it costs to acquire a new customer

Results

Fill in the form and click "Calculate" to see customer lifetime value

Understanding Customer Lifetime Value

What is Customer Lifetime Value (CLV)? CLV is the total revenue a business can reasonably expect from a single customer account throughout the business relationship. It's a crucial metric that helps businesses make decisions about how much to invest in acquiring and retaining customers.

Why is CLV important? Understanding CLV helps you:

  • Make better decisions about marketing and sales budgets
  • Identify which customer segments are most valuable to your business
  • Determine how much you can spend on customer acquisition
  • Justify investments in customer retention programs

How to use CLV: As a rule of thumb, your customer acquisition cost (CAC) should be less than one-third of your customer lifetime value. If your CLV:CAC ratio is lower than 3:1, consider ways to either increase customer value (through upselling, cross-selling, or retention) or reduce acquisition costs.

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