Customer Lifetime Value Calculator
Calculate the total worth of a customer to your business over the entire relationship. Measure long-term profitability and make better marketing decisions.
Customer Lifetime Value Results
Value Breakdown:
Marketing Implications:
About
Our Customer Lifetime Value Calculator helps businesses quantify the long-term value of customer relationships to make smarter marketing and operational decisions.
Why Choose
Comprehensive CLV calculation including discounted cash flow, clear visualization of customer profitability, and actionable marketing cost recommendations.
Features
Calculate CLV, annual value, gross LTV, net present value, maximum CAC, payback period, and get data-driven marketing recommendations.
Benefits
Optimize marketing spend, improve customer retention strategies, increase profitability, and make data-driven business decisions.
Enter Customer Data
Input average purchase value, purchase frequency, customer lifespan, profit margin, and discount rate.
Calculate
Click calculate to process your Customer Lifetime Value using standard financial formulas.
Analyze Results
Review CLV, profitability metrics, and marketing cost recommendations to guide your strategy.
Frequently Asked Questions – CLV Calculator
CLV predicts the net profit attributed to the entire future relationship with a customer. It’s crucial for determining how much to spend on acquisition, identifying valuable customer segments, and making strategic business decisions.
Average order value measures single transactions, while CLV considers all future purchases, account duration, and profitability. A customer with moderate purchases but long tenure may have higher CLV than one with large but infrequent purchases.
Healthy businesses typically maintain a 3:1 CLV:CAC ratio. A 1:1 ratio means you’re breaking even, while ratios above 3:1 may indicate under-investment in growth. The calculator shows your maximum and recommended CAC.
The discount rate accounts for the time value of money – future profits are worth less than current ones. Typical rates are 8-15% depending on your cost of capital and risk factors.
Strategies include: increasing purchase frequency (subscriptions, replenishment), raising average order value (bundling, upsells), extending customer lifespan (retention programs), and improving profit margins (operational efficiency).