Free Customer Lifetime Value Calculator
Calculate customer lifetime value (CLV) to measure customer profitability and optimize your marketing spend. Make data-driven decisions about customer acquisition and retention.
Client-side calculation for immediate results
Customer Behavior Data
Customer Value Metrics
Optimization Tips
• Focus on improving retention rate and increasing average order value
• Industry benchmark: CLV/CAC ratio should be 3:1 or higher
• Payback period should ideally be under 12 months
Frequently Asked Questions
Get answers to common questions about customer lifetime value calculations
What is Customer Lifetime Value (CLV)?
Customer Lifetime Value (CLV) is a metric that estimates the total revenue a business can expect from a single customer throughout their entire relationship. It helps businesses understand how much they can spend on acquiring customers while remaining profitable, and guides marketing budget allocation and customer retention strategies.
What's a good CLV to CAC ratio?
A healthy CLV to CAC ratio is 3:1 or higher. This means your customer lifetime value should be at least 3 times your customer acquisition cost. Ratios above 3:1 indicate sustainable growth, while ratios below 2:1 suggest you may be spending too much on acquisition or need to improve customer retention and value.
How do I improve my CLV?
Increase Average Order Value: Upsell, cross-sell, bundle products.Improve Retention: Better customer service, loyalty programs, engagement campaigns.Increase Purchase Frequency: Email marketing, retargeting, subscription models.Extend Customer Lifespan: Continuous value delivery and relationship building.
What's the difference between basic and advanced CLV?
Basic CLV uses a simple formula: AOV × Purchase Frequency × Customer Lifespan.Advanced CLV includes gross margin, considers customer acquisition costs, applies discount rates for time value of money, and factors in retention rates for more accurate predictions. Advanced calculations provide better insights for strategic decision-making.
How often should I calculate CLV?
Calculate CLV monthly or quarterly to track trends and make informed decisions. For new businesses, calculate more frequently (monthly) as patterns establish. For mature businesses, quarterly reviews are usually sufficient. Always recalculate when launching new products, changing pricing, or implementing major retention initiatives.
Optimize Your Customer Value Today
Make data-driven decisions about customer acquisition and retention. Calculate CLV to maximize profitability and scale your business sustainably.