Business calculator
Customer Lifetime Value Calculator
Estimate customer lifetime value from order value, purchase frequency, margin, and lifespan.
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.
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?+
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?+
Estimate customer lifetime value from order value, purchase frequency, margin, and lifespan.
How accurate is the Customer Lifetime Value Calculator?+
Customer Lifetime Value Calculator applies the formula and assumptions shown on this page. Results may be rounded for readability, so verify changing rates, thresholds, medical guidance, or legal rules with the cited source or a qualified professional.
What should I check before using the Customer Lifetime Value Calculator result?+
Check that the units, dates, rates, and assumptions match your situation. Change one input at a time to understand which values have the largest effect on the result.
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
Enter your details
Enter order value, purchase frequency, margin, and lifespan, then complete any other fields shown in the calculator.
- 2
Check the calculation
Review the result alongside the CLV formula: CLV = average order value x purchases/year x lifespan x gross margin.
- 3
Compare scenarios
Change one or more inputs to see how they affect the customer Lifetime Value Calculator result before you use the estimate.
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