CLV Calculator

Calculate Customer Lifetime Value from order value, purchase frequency, and lifespan. Find CLV, revenue targets, or required customers.

Avg Order Value
$
Purchase Freq / yr
Lifespan (years)
CLV:CAC Ratio Reference
Ratio
Status
Meaning
< 1:1
Unsustainable
Losing money
1:1 – 3:1
Below Target
Tight margins
3:1 – 5:1
Healthy
Industry standard
> 5:1
Great
Strong unit economics

How to Use

  1. 1 In 'Calc CLV' mode, enter your average order value, how many times customers purchase per year, and average customer lifespan in years.
  2. 2 Use 'Calc Revenue' to project total revenue from a customer base given your CLV.
  3. 3 Use 'Calc Customers' to find how many customers you need to hit a revenue goal.

Use Cases

Customer Acquisition Budget

Use CLV to determine the maximum you can spend to acquire a customer while maintaining profitability.

Retention Strategy ROI

Calculate how increasing customer lifespan by one year impacts total lifetime value and overall revenue.

Pricing Strategy

Understand how changes to average order value or purchase frequency affect customer lifetime value.

FAQ

CLV is the total revenue you expect from a single customer account throughout their relationship with your business. Formula: CLV = Avg Order Value × Purchase Frequency (per year) × Customer Lifespan (years).

A good CLV is highly industry-dependent. The key metric is the CLV:CAC ratio — a ratio of 3:1 or higher is generally considered healthy, meaning customers generate 3x more revenue than it costs to acquire them.

Increase average order value through upselling/cross-selling, increase purchase frequency with loyalty programs and re-engagement campaigns, and extend customer lifespan through exceptional customer service and product improvements.

Related Tools