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.
Your numbers
Change any value — results update as you type
Values are estimates. Nothing you enter leaves this page.
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Based on gross profit after your margin — not revenue.
Annual revenue per customer
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Customer lifespan used (years)
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Lifetime revenue (before costs)
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Lifetime value to acquisition cost
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Profit after acquisition cost
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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
- Enter the typical purchase value and how often customers buy per year.
- Enter how many years a customer usually stays and your gross margin.
- Add what it costs you to acquire a customer.
- 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.