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.
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.