Customer Lifetime Value (CLV) Calculator
Estimate customer lifetime value (CLV) from average order value, purchase frequency, and customer relationship duration, with optional margin and acquisition cost. The calculation runs entirely in your browser.
How it works
CLV (Customer Lifetime Value) estimates the total profit or revenue a customer generates throughout their relationship with your business. This tool applies the standard formula: average order value × annual purchase frequency × relationship length in years, adjusted by profit margin. If you provide a customer acquisition cost (CAC), a net CLV is also calculated to assess a customer's true profitability.
Why factor in margin instead of only revenue?
A high average order value doesn't necessarily mean a profitable customer if margins are thin. By entering your profit margin, you get an estimate closer to the real profit generated per customer, which is more useful for comparing CLV to your acquisition cost and judging the profitability of your marketing efforts.
How do I estimate purchase frequency and customer lifetime?
Annual purchase frequency and average customer relationship length are usually estimated from your historical data (number of orders per customer over a period, retention or churn rate). Without precise data, use conservative assumptions and vary the values to get a realistic range rather than a single figure.
This calculation is a simplified estimate for indicative purposes: it is no substitute for an in-depth financial analysis by an accountant, a financial controller or a financial advisor, especially for major marketing investment decisions.
The calculation runs entirely in your browser: no entered data is sent to a server.