CCoreCRMHub
Revenue & Profitability calculator

Customer Lifetime Value

Customer lifetime value (CLV) tells you how much a customer is worth, so you know how much you can spend to win one. Everything runs in your browser — nothing you enter is sent anywhere.

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Change any value — results update as you type

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Customer lifetime value (gross profit)

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Based on gross profit after your margin — not revenue.

Annual revenue per customer —
Customer lifespan used (years) —
Lifetime revenue (before costs) —
Lifetime value to acquisition cost —
Profit after acquisition cost —

Read this estimate carefully

A common healthy target is a CLV of at least 3× acquisition cost, but your own margins and cash flow decide what works.

How to use it

  1. Enter the typical purchase value and how often customers buy per year.
  2. Enter how many years a customer usually stays and your gross margin.
  3. Add what it costs you to acquire a customer.
  4. Compare lifetime value with that cost.

How it is calculated

  • Annual revenue = average purchase × purchases per year
  • Lifespan = 1 ÷ annual churn rate, or the lifespan you enter if churn is 0
  • Lifetime revenue = annual revenue × lifespan (revenue, not profit)
  • Lifetime value = lifetime revenue × gross margin (profit-based)
  • LTV : CAC = lifetime value ÷ acquisition cost

Common questions

Should CLV use revenue or profit?

Profit. Revenue overstates what a customer is worth after your costs.

What is a good ratio?

Many businesses aim for 3× or more, but it depends on payback time and cash.

How do I find lifespan?

Divide 1 by your annual churn rate, or measure the average time customers stay.