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VELNARO

Customer Lifetime Value Calculator

Combine average order value, purchase frequency, margin and retention to estimate customer lifetime value (CLV or LTV), and compare it with what you pay to acquire a customer.

Customer lifetime value

$877.50

Monthly gross profit per customer

$43.88

Expected lifetime

20 months (1.67 years)

How this was worked out

  1. Step 1Monthly profit = 65 × 1.5 × 45% = $43.88
  2. Step 2Lifetime = 1 ÷ 0.05 = 20 months
  3. Step 3CLV = $43.88 × 20 = $877.50

This is a simplified model. It ignores discounting, expansion revenue and changes in behaviour over time.

Formula

CLV = (AOV × purchase frequency × margin) ÷ monthly churn rate

Example

Input

AOV $65, 1.5/month, 45% margin, 5% churn

Result

CLV ≈ $877.50

Frequently asked questions

Around 3:1 or higher is a common benchmark — the customer returns three times what it cost to win them.

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