Calculator
Customer Lifetime Value Calculator
Estimate gross customer revenue and customer lifetime value from order value, purchase frequency, lifespan, and gross margin.
Result
Gross customer revenue
$900.00
Estimated customer lifetime value
$540.00
How to use this calculator
What this calculator does
Estimate gross customer revenue and customer lifetime value from order value, purchase frequency, lifespan, and gross margin.
How to use it
Enter your average order value, purchases per year, average customer lifespan, and gross margin, then review the result, formula, example, and FAQs below. Try a few scenarios to see which inputs move the result most.
What the result means
Use the result as a direct calculation from the values you entered. If it looks off, check the inputs and formula shown on this page.
Browse more business calculators for related estimates and comparisons.
Business results are estimates for planning and education. They are not business, legal, tax, employment, accounting, or financial advice.
Scenario guidance
When to use this
Use this when estimating the gross-margin value of an average customer before comparing acquisition costs.
Example scenario
An ecommerce team wants to compare estimated customer lifetime value with customer acquisition cost across channels.
Inputs that usually matter most
- Average order value, because it sets revenue per purchase.
- Purchases per year and lifespan, which estimate repeat purchase behavior.
- Gross margin percentage, because revenue alone does not show contribution value.
Common mistake to avoid
Do not treat this as a valuation model; refunds, churn, discounts, support costs, taxes, and cohort differences can change actual value.
How to interpret the result
Use gross customer revenue and CLV as planning estimates, then compare with CAC, payback period, retention, and channel quality.
Results are estimates for planning and education. They are not accounting, tax, legal, business, or financial advice.
Formula
Gross customer revenue multiplies average order value, purchases per year, and customer lifespan. CLV applies gross margin percentage to that revenue.
Example customer lifetime value
$75 average order value, 4 purchases per year, 3 years, and 60% gross margin gives $900 gross customer revenue and $540 estimated CLV.
Frequently Asked Questions
Should I use revenue or profit margin?
This calculator applies gross margin to revenue so the CLV estimate reflects margin, not just sales volume.
Does this include acquisition cost?
No. Compare the CLV estimate with customer acquisition cost separately.
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