Customer Lifetime Value Calculator
See what a customer is really worth. Enter your average order value, purchase frequency, lifespan and margin, and get their lifetime value in both revenue and profit, so you know how much you can spend to acquire them.
Lifetime value in revenue and profit.
Customer Inputs
CLV Formula
CLV = Average order value x Orders per year x Customer lifespan x Gross margin
$216.00
Profit-based (after margin)
$540.00
$180.00
9
Why CLV matters
CLV multiplies average order value by how often a customer buys and how long they stay. Applying your gross margin turns lifetime revenue into lifetime profit, the real number to compare against your customer acquisition cost.
Frequently asked questions
What is customer lifetime value (CLV/LTV)?
The total value a customer brings over their entire relationship with your store, in revenue, or after margin, in profit.
Why does CLV matter?
It tells you how much you can afford to spend acquiring a customer. If a customer is worth $150 in profit, you can spend far more than a single order's margin to win them.
Revenue-based vs profit-based CLV?
Revenue CLV is total spend; profit CLV applies your gross margin. Profit-based is the safer number for setting acquisition budgets.
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