Customer Lifetime Value Calculator

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Estimate Customer Lifetime Value (CLV) from average purchase, frequency and lifespan, with optional gross margin and retention rate. Free for marketers and founders.

$
/ year
years
%
%
If set, lifespan is derived from retention as 1 / (1 − rate).
Customer lifetime value –
Annual customer value –
Total lifetime revenue –
Margin-adjusted CLV –
CLV = average purchase × purchases per year × lifespan × gross margin. A retention rate, if provided, overrides the lifespan field.

About Customer Lifetime Value Calculator

The customer lifetime value calculator estimates how much revenue an average customer brings over their entire relationship with your business. Enter the average purchase value, purchases per year and customer lifespan in years, and the CLV appears instantly — along with the annual customer value and total lifetime revenue.

The core formula is CLV = average purchase × purchases per year × lifespan, optionally multiplied by your gross margin to convert revenue into profit contribution. If you know your retention rate instead of the lifespan, enter it and the calculator derives the lifespan as 1 ÷ (1 − retention), overriding the lifespan field.

CLV anchors your growth decisions: it caps what you can sensibly spend to acquire a customer and shows where retention improvements pay off. This free calculator is aimed at founders and marketers who want the number without building a spreadsheet model.

How to use Customer Lifetime Value Calculator

  1. Enter the average purchase value.
  2. Set how many purchases a typical customer makes per year.
  3. Enter the customer lifespan in years — or provide a retention rate to derive it automatically.
  4. Optionally add your gross margin.
  5. Read the CLV, annual customer value, total lifetime revenue and margin-adjusted CLV.

Frequently asked questions

This calculator uses CLV = average purchase value × purchases per year × customer lifespan, multiplied by gross margin when you provide one. It is the standard simple model used for quick planning.

Lifespan is derived as 1 ÷ (1 − retention rate). A 75% annual retention implies customers stay 4 years on average; when you enter a retention rate, it overrides whatever lifespan you typed.

Margin-adjusted CLV is more honest for spending decisions, since it reflects what a customer actually contributes after cost of goods. Revenue CLV is fine for comparing segments against each other.

A common benchmark is a CLV-to-CAC ratio of about 3:1. If acquiring a customer costs more than a third of their lifetime value, margins get tight once overheads are included.

Use your own churn data whenever possible. If you lack history, derive lifespan from an estimated retention rate rather than guessing years directly — small retention changes move CLV a lot.
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