Customer Lifetime Value Calculator
Know what one customer is really worth. Enter your average purchase value, how often they buy, and how long they stay — the estimated CLV appears with a plain English explanation.
Your numbers
Result
How to use
- Enter your average purchase value — the typical amount of one order.
- Enter how many times an average customer buys from you per year.
- Enter how many years a typical customer stays with you.
- Press Calculate CLV to see the total lifetime value and the yearly value.
Formula: CLV = average purchase value × purchases per year × lifespan in years.
Tips
- Compare CLV with your customer acquisition cost — CLV should be at least 3 times higher.
- The cheapest CLV boost is retention: keeping customers one year longer is usually free.
- Raise average order value with bundles instead of discounts.
- Calculate CLV separately for your best segment — that is where to aim marketing.
Frequently Asked Questions (FAQ)
What is customer lifetime value?
Customer lifetime value (CLV) is the total revenue one average customer brings over their whole relationship with your business. It is calculated as average purchase value times purchase frequency times customer lifespan.
Why does CLV matter?
CLV tells you how much you can afford to spend to win a new customer. If acquiring a customer costs more than their lifetime value, the business loses money on every sale.
How do I increase customer lifetime value?
Sell more often to the same customers, raise the average order value with bundles or upsells, and keep customers loyal longer with good service and follow-ups.
What numbers does it need?
Average purchase value, how many times a customer buys per year, and the average customer lifespan in years. It multiplies the three to get CLV.