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πŸ’Ό Business ToolsCalculatorIntermediate·⏱ 5 min

πŸ‘₯ Customer Lifetime Value Calculator

Know how much each customer is really worth to your business

customer lifetime valueCLVLTVcustomer retentionacquisition cost

About This Tool

Calculate the lifetime value (LTV) of your average customer. Understand how much you can afford to spend to acquire each customer and model the revenue impact of improving retention, purchase frequency, or average order value.

How It Works

  1. 1

    Enter Customer Purchase Data

    Input your average order/transaction value, average purchase frequency per year, and average customer lifespan in years.

  2. 2

    Add Your Margins

    Enter your gross profit margin (%) to calculate the true profit contribution of each customer over their lifetime.

  3. 3

    See CLV & Max CPA

    View your Customer Lifetime Value, the maximum cost per acquisition (CPA) you can afford, and a model showing the impact of improving each input by 10%.

Tool Details

CategoryBusiness Tools
TypeCalculator
DifficultyIntermediate
Time Needed5 min
Last Updated30 March 2025

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Use the Tool

πŸ‘₯ Customer Lifetime Value Calculator

Free Β· No sign-up required Β· Runs in your browser

Customer Lifetime Value Calculator

Know exactly how much each customer is worth β€” and how much to spend acquiring them.

AED
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Customer Lifetime Value Calculator FAQ

Common Questions About Customer Lifetime Value Calculator

CLV is the total net profit a business expects to generate from a customer throughout their entire relationship. It helps businesses determine how much to invest in acquiring and retaining customers. Formula: CLV = Average Purchase Value Γ— Purchase Frequency Γ— Customer Lifespan Γ— Gross Margin.

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