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Customer lifetime value (CLV) calculator

Estimate what a typical customer is worth over the whole relationship — in revenue and in gross margin. It opens on a worked example — change any number. Nothing you enter is saved.

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Margin-based CLV

$384

Simple CLV (revenue)
$960

The formula

  • Simple CLV = average purchase value × purchases per year × lifespan in years
  • Margin-based CLV = average purchase value × purchases per year × gross margin × lifespan in years

How to read it

Margin-based CLV is the better guide for how much you can afford to spend to win a customer, because revenue alone ignores what it costs to serve them.

Definitions, a full worked example and common pitfalls are in our guide: Customer Lifetime Value (CLV) and the LTV:CAC Ratio.

General information, not accounting, tax or financial advice. Definitions vary between companies — match the formula to how your own systems count.

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