Overview
What Is Customer Lifetime Value?
Customer Lifetime Value (CLV) estimates the total revenue a business can expect from a single customer account over their entire relationship.
Calculate customer lifetime value instantly.
Customer Lifetime Value (CLV) estimates the total revenue a business can expect from a single customer account over their entire relationship.
Useful for understanding customer value, informing marketing spend, and business strategy decisions.
Input the typical amount per transaction.
Input how often they buy and how long they stay a customer.
The result updates automatically.
CLV = Average Purchase Value × Purchase Frequency × Customer Lifespan
It helps determine appropriate customer acquisition spending and informs retention strategy investment.
No, this basic version calculates revenue-based CLV - for profit-based CLV, multiply by your profit margin percentage.
A common guideline suggests CLV should be at least 3x customer acquisition cost, though this varies by industry.
No, this basic model doesn't discount future value - more advanced models incorporate discount rates.
No, calculations happen entirely in your browser.
Based on historical data about how long customers typically remain active, or industry benchmarks if you're a newer business.
Yes, CLV is particularly relevant for subscription and recurring revenue business models.
Either can work, though median may be more representative if you have outlier high-value purchases skewing the average.
Yes, completely free with no sign-up required.