Business calculator

Customer Lifetime Value Calculator

Estimate customer lifetime value from order value, purchase frequency, margin, and lifespan.

FormulaCLV = average order value x purchases/year x lifespan x gross margin

Formula

CLV formula

CLV = average order value x purchases/year x lifespan x gross margin

100 order value x 4 purchases x 3 years x 60% margin = 720.

FAQ5 common questions for this calculator.

FAQs

What is CLV?+

CLV estimates the value a customer generates over their relationship with a business.

How does the Customer Lifetime Value Calculator calculate the result?+

For the Customer Lifetime Value Calculator, it uses the CLV formula: CLV = average order value x purchases/year x lifespan x gross margin. 100 order value x 4 purchases x 3 years x 60% margin = 720.

What information do I need to use the Customer Lifetime Value Calculator?+

For the Customer Lifetime Value Calculator, enter order value, purchase frequency, margin, and lifespan. Keep the units consistent with the calculator fields and compare your setup with the worked example on the page.

How accurate is the Customer Lifetime Value Calculator?+

Customer Lifetime Value Calculator is accurate when the business inputs come from the same reporting period and definition. It applies the CLV formula. Platform attribution windows, refunds, taxes, or overhead allocation can change the interpretation.

What should I check before using the Customer Lifetime Value Calculator result?+

For the Customer Lifetime Value Calculator, check order value, purchase frequency, margin, and lifespan, measurement period, attribution window, revenue basis, costs, and rounding rules. Business metrics change meaning when inputs come from different systems or time ranges.

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Business guide

How to use the Customer Lifetime Value Calculator

Estimate customer lifetime value from order value, purchase frequency, margin, and lifespan. The page also explains the CLV formula and shows a practical example: 100 order value x 4 purchases x 3 years x 60% margin = 720.

  1. 1

    Enter your details

    Enter order value, purchase frequency, margin, and lifespan, then complete any other fields shown in the calculator.

  2. 2

    Check the calculation

    Review the result alongside the CLV formula: CLV = average order value x purchases/year x lifespan x gross margin.

  3. 3

    Compare scenarios

    Change one or more inputs to see how they affect the customer Lifetime Value Calculator result before you use the estimate.