Customer Lifetime Value Calculator
Estimate CLV from order value, frequency, lifespan and margin — or from churn.
Free · no sign-up · runs privately in your browser
Fill in the fields (or tap Try an example) to see what each customer is worth — and how much you can afford to spend to win one.
Formula: CLV = AOV × purchases/year × lifespan × gross margin. Payback = CAC ÷ (monthly gross profit).
How to use it
- Choose purchase-based or subscription (churn) method.
- Enter average order value, purchases per year, customer lifespan and gross margin — or monthly revenue per customer, margin and monthly churn.
- Optionally add customer acquisition cost (CAC) for the CLV:CAC ratio and payback period.
Example
£80 AOV × 4 orders/year × 3 years × 50% margin = £480 CLV. With £120 CAC, CLV:CAC = 4.0 and payback ≈ 9 months.
FAQs
Why include gross margin?
Revenue-based CLV overstates what a customer is worth. Margin-based CLV tells you how much profit you can afford to spend acquiring them.
What is a healthy CLV:CAC ratio?
A common rule of thumb is 3:1 or higher, but the right figure depends on cash flow, payback time and growth goals.
How is churn-based CLV calculated?
Average lifetime (months) = 1 ÷ monthly churn rate. CLV = monthly revenue per customer × gross margin × lifetime.
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