Customer Lifetime Value Calculator
Estimate customer lifetime value using average order value, purchase frequency, and customer lifespan.
How this calculator works
How to use this calculator
Enter the required business values in the fields, then click Calculate. Review the result and use it as a quick planning estimate for business analysis, reporting, or decision-making.
Formula used
Customer Lifetime Value = Average Order Value × Purchase Frequency per Year × Customer Lifespan in Years
Example calculation
Average Order Value = $50, Purchase Frequency = 4 purchases per year, and Customer Lifespan = 3 years. CLV = 50 × 4 × 3 = $600.00.
What the result means
A higher CLV means each customer is expected to generate more revenue over the relationship period. Compare CLV with customer acquisition cost to understand whether growth is financially healthy.
Frequently asked questions
Is this CLV calculator revenue-based or profit-based?
This version calculates revenue-based CLV. For a profit-based view, multiply the result by your gross margin.
Can I use monthly purchase frequency?
Yes, but convert it to yearly frequency first. For example, 2 purchases per month equals 24 purchases per year.
Why does CLV matter?
CLV helps you understand how much revenue a customer may bring over time, which supports marketing budget and retention decisions.