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
- Step 1Monthly profit = 65 × 1.5 × 45% = $43.88
- Step 2Lifetime = 1 ÷ 0.05 = 20 months
- Step 3CLV = $43.88 × 20 = $877.50
This is a simplified model. It ignores discounting, expansion revenue and changes in behaviour over time.
Formula
Example
Input
AOV $65, 1.5/month, 45% margin, 5% churn
Result
CLV ≈ $877.50
Frequently asked questions
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