CPC Calculator
Work out cost per click from ad spend and clicks.
Customer Lifetime Value Calculator
Work out CLV from order value, purchase frequency and lifespan.
Customer lifetime value
—
LTV : CAC ratio—
Quick Tool Overview
The Customer Lifetime Value Calculator turns order value, purchase frequency and customer lifespan into a lifetime value figure instantly, with an LTV:CAC ratio when acquisition cost is added.
- What it does
- Calculates customer lifetime value (CLV / LTV)
- You give it
- Order value, purchase frequency, lifespan, and optionally margin and CAC
- You get back
- Lifetime value, plus the LTV:CAC ratio
- Best for
- Deciding how much is sensible to spend acquiring a customer
About the Customer Lifetime Value Calculator
Customer lifetime value puts a number on what a relationship with a customer is actually worth over time, not just on the first order — the figure that decides how much it is sensible to spend acquiring one.
Enter average order value, purchases per year and how many years a customer typically stays, and get lifetime value straight away. Add gross margin for a profit-based figure, and acquisition cost to see the LTV:CAC ratio investors and growth teams watch most closely.
Key features of the Customer Lifetime Value Calculator
Instant results
Lifetime value updates live as any figure changes.
Profit-based option
Add gross margin for a profit-based LTV, not just revenue.
LTV:CAC ratio
Add acquisition cost to see the ratio growth teams watch most closely.
Runs in your browser
No sign-up, no data sent anywhere.
How to use the Customer Lifetime Value Calculator
-
1
Enter order value and frequency
Average order value and how many times a customer buys per year.
-
2
Enter customer lifespan
How many years a customer typically keeps buying.
-
3
Add margin and CAC
Optional, but they turn revenue into a profit-based LTV and a CAC ratio.
-
4
Read the lifetime value
Updates instantly, with the working shown below.
Frequently asked questions
A common formula is CLV = Average order value × Purchases per year × Customer lifespan in years, optionally multiplied by gross margin for a profit-based figure.
A widely used rule of thumb is a ratio of at least 3:1 — lifetime value at least three times acquisition cost — though the right target varies by business model and growth stage.
Profit gives a more honest figure for comparing against acquisition cost. This calculator uses revenue unless a gross margin is entered, in which case it switches to profit-based CLV.
Often as 1 ÷ churn rate — a business losing 25% of customers a year has an average lifespan of about 4 years. Historical purchase data is more reliable than a guess where it is available.
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