Business tools

Customer Lifetime Value Calculator

Estimate customer lifetime revenue and gross profit using purchase frequency and lifespan, or recurring revenue and churn.

Choose the customer economics you have. Use consistent periods and currencies. These estimates use the assumptions you enter; they do not predict future retention or buying behavior.

The calculation runs locally in your browser. No input values are saved or sent to a server.

Estimate revenue and gross-profit value per customer.

Use the same currency for all monetary inputs.

Enter an average purchase frequency greater than zero.

Enter an average customer relationship duration greater than zero.

Leave blank to see CLV without CAC comparisons. Enter $0 to show net value; the ratio is unavailable at zero CAC.

Purchase frequency example

At a $100 average order value, 4 purchases per year, a 3-year customer lifespan and 50% gross margin, the estimate is $1,200 lifetime revenue and $600 lifetime gross profit.

About this calculator

Understand the CLV results

Customer Lifetime Value estimates the value generated by an average customer over the relationship. Revenue CLV is total expected customer revenue; Gross Profit CLV applies your gross margin to that revenue.

Customer acquisition economics

Customer Acquisition Cost is the estimated cost to acquire one customer. LTV:CAC divides lifetime gross profit by CAC. Compare scenarios for your business; the calculator does not prescribe a universal ratio or acquisition-cost target.

Frequently asked questions

How is customer lifetime value estimated?

This calculator multiplies revenue per period by expected customer lifespan, then applies gross margin to estimate lifetime gross profit.

How does churn estimate customer lifetime?

In recurring-revenue mode, the simplified estimate is 1 divided by monthly churn expressed as a decimal. It assumes a stable churn rate and is not a precise forecast.

CLV is an estimate, not a guarantee. Retention, purchase behavior, margins and acquisition economics can change over time.