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Customer Lifetime Value Calculator

Q: What is the simple CLV formula?

CLV = Average Order Value x Purchase Frequency x Customer Lifespan.

Q: What is LTV:CAC Ratio?

It compares the lifetime value of a customer to the cost to acquire them. A 3:1 ratio is considered healthy for most businesses.

Q: Why is Profit Margin important here?

Using profit margin calculates the actual net value of a customer, preventing overspending on marketing based on revenue figures alone.

Tools

CLV Calculator

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Customer Metrics

Average Order Value (AOV)

Purchase Frequency

Customer Lifespan (Years)

Years

Profit Margin (Optional)

Acquisition Cost / CAC (Optional)

Lifetime Revenue (Gross CLV).00
Total revenue over customer life

Net Lifetime Profit

.00

Profit after Margin & CAC costs

Analysis

Annual Revenue: .00
LTV:CAC Ratio: -
Return on Investment: -

About the CLV Calculator

Customer Lifetime Value (CLV), also known as LTV (Lifetime Value), is one of the most important metrics for growing a business. It represents the total amount of money a customer is expected to spend with your business during their entire relationship with you. Understanding your CLV helps you determine how much you can afford to spend to acquire new customers (CAC).

Unlike basic calculators that only multiply revenue, our tool helps you find your True Profit LTV. By inputting your profit margin and customer acquisition cost, you can see exactly how much net profit a single customer generates over years. This is essential for e-commerce, SaaS, and subscription-based businesses to ensure long-term sustainability.

How to Use the Tool

Enter Order Value: The average amount a customer spends per transaction.
Enter Frequency: How often they buy (e.g., 2 times a month).
Enter Lifespan: How many years the average customer sticks around.
Optional Costs: Add your Profit Margin % and Acquisition Cost (CAC) to calculate the true net profit per customer.

Frequently Asked Questions

What is the simple CLV formula?

The basic formula for CLV is: (Average Order Value) x (Purchase Frequency) x (Customer Lifespan). This gives you the total gross revenue.

What is LTV:CAC Ratio?

This ratio compares the Lifetime Value of a customer to the cost of acquiring them. A healthy business typically targets a ratio of 3:1 (meaning you make ' for every spent on marketing). If your ratio is 1:1, you are breaking even. If it's 5:1, you might be under-spending on growth.

Why is Profit Margin important here?

Revenue is vanity; profit is sanity. If you sell a 0 product but your margin is only 10%, your CLV is much lower than it appears. Calculating LTV based on gross profit rather than revenue ensures you don't overspend on ads.

Is my data safe?

Yes. This calculator runs entirely in your web browser using JavaScript. No business data or financial figures are sent to our servers.