Customer Lifetime Value (CLV) Calculator
Calculate how much revenue a customer generates over their entire relationship with your business. Use CLV to guide marketing spend, retention strategy, and growth decisions.
CLV Formula
Example
Frequently Asked Questions
CLV is the total revenue a business can expect from a single customer account throughout their relationship. It helps businesses decide how much to invest in acquiring and retaining customers.
CLV (Customer Lifetime Value) and LTV (Lifetime Value) are used interchangeably. Some models use LTV to refer to the gross margin-adjusted value, accounting for costs.
A healthy LTV:CAC ratio is 3:1 or higher. This means for every $1 spent acquiring a customer, you generate $3 in lifetime value. A ratio below 1:1 means you are losing money on every customer.
Increase average order value through upsells and bundles, improve purchase frequency with loyalty programs and email marketing, and extend customer lifespan through excellent service and retention strategies.
Related Calculators
CAC Calculator
Calculate Customer Acquisition Cost (CAC) from your total marketing and sales spend.
Churn Rate Calculator
Calculate customer churn rate, retention rate, and revenue churn for your business.
Revenue Calculator
Calculate total revenue, average revenue per unit, and revenue growth rate.