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Customer Lifetime Value (CLV) Calculator

Estimate the total profit a customer generates over their entire relationship with your business.

The average dollar amount per transaction.
How many times the average customer buys per year.
How long, on average, a customer continues buying from you.
60
Your gross margin percentage — used to convert revenue LTV to profit CLV.

Results

Customer Lifetime Value (CLV)$720.00
Gross Revenue LTV$1,200.00
Annual Revenue per Customer$400.00

📖What is it?

Customer Lifetime Value (CLV) is the total profit your business can expect from a single customer account over the duration of the relationship. LTV (Lifetime Revenue Value) is the gross revenue version — CLV adjusts for your gross margin to show actual profit contribution.

🎯How to use

1. Enter the average purchase value per transaction. 2. Enter how many times the average customer buys per year. 3. Enter the average customer lifespan in years. 4. Set your gross margin percentage. The calculator outputs CLV (profit), LTV (gross revenue), and annual revenue per customer.

💡Example scenario

An e-commerce store's average customer spends $100, buys 4 times/year, stays for 3 years, and the store operates at 60% gross margin. Annual revenue per customer = $400. LTV = $1,200. CLV = $720. If customer acquisition cost (CAC) is $100, the LTV:CAC ratio is 12:1 — excellent.

🏆Pro tip

The golden benchmark: LTV:CAC ratio should be at least 3:1 for a healthy business. A ratio below 1:1 means you are losing money on every customer. Focus on retention — increasing customer lifespan from 3 to 4 years lifts CLV by 33% with no increase in acquisition cost. Email nurture, loyalty programs, and subscription models are the highest-ROI retention tools.