Customer Lifetime Value Calculator
Estimate customer lifetime value.
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Estimate customer lifetime value
Customer lifetime value, or CLV, helps estimate how much gross value a customer may generate over time. Enter average order value, purchase frequency, customer lifespan and gross margin to estimate CLV and lifetime revenue. It is useful for acquisition budgets, retention planning and subscription or repeat-purchase businesses.
Simple CLV model
This calculator uses a straightforward formula and does not model churn curves, discount rates or cohort differences.
Frequently asked questions
What is the simple CLV formula?
CLV equals average order value times purchase frequency times customer lifespan times gross margin.
Why include gross margin?
Margin turns lifetime revenue into an estimated gross value after product or service cost.
Is this an exact forecast?
No. It is a simple estimate for planning and comparison.