Customer Lifetime Value (CLV) Calculator
Estimate the total revenue your business can generate from one customer throughout the customer relationship.
Enter Your Customer Metrics
Use average purchase value, annual purchase frequency and estimated customer lifespan.
Your Results Will Appear Here
Enter your customer metrics to estimate customer lifetime value.
How to Calculate Customer Lifetime Value
Customer Lifetime Value (CLV), also called Customer Lifetime Revenue in this calculator, estimates the total revenue a business receives from one customer over the entire customer relationship.
Customer Lifetime Value Formula
Annual Customer Revenue = Average Purchase Value × Purchase Frequency
CLV = Average Purchase Value × Purchase Frequency × Customer Lifespan
Calculation Example
Suppose a customer spends an average of $100 per purchase, makes 4 purchases per year and remains a customer for 3 years.
- Average purchase value: $100.
- Annual purchase frequency: 4.
- Customer lifespan: 3 years.
- CLV: $100 × 4 × 3 = $1,200.
Frequently Asked Questions
What is Customer Lifetime Value?
CLV estimates the revenue a business can generate from a customer throughout the customer's relationship with the business.
Is this a revenue-based or profit-based CLV?
This calculator provides revenue-based CLV. It does not subtract product costs, operating expenses, marketing costs, acquisition costs or taxes.
How should I calculate purchase frequency?
Divide the total number of purchases by the number of customers and the number of years in the measurement period, using a consistent period.
Why is customer lifespan important?
A longer customer relationship can increase total customer revenue when purchase value and purchase frequency remain consistent.