Customer Lifetime Value (CLV) Calculator
Estimate gross-margin CLV from average order value, purchase frequency, and customer lifespan.
Inputs
Estimated gross-margin CLV
About Customer Lifetime Value
What it does
Estimates gross-margin CLV using average order value, orders per year, average customer lifespan in years, and gross margin percentage.
Why it matters
CLV compared to CAC tells you whether you can afford to acquire customers profitably and how much room you have to invest in retention.
Definition
Customer lifetime value (CLV) is the total gross margin you expect from a customer relationship over its lifetime — not just revenue.
Assumptions
- •Spend and purchase patterns are stable over the modeled lifetime
- •Gross margin % applies uniformly across orders
- •No expansion revenue modeled unless you adjust inputs manually
How to interpret your results
If CLV is not several times higher than CAC (depending on your model), revisit pricing, retention, or acquisition efficiency.
How to improve
Pair with CAC
Compare CLV to CAC and payback — that trio is the core of unit economics.
Use segments
Enterprise vs SMB customers often have very different CLV; model them separately.
Relevant searches and use cases
Teams usually land on this page when they are looking for customer lifetime value calculator and related workflows. This tool also supports searches such as CLV calculator, LTV calculator, gross margin CLV, customer value calculator, unit economics CLV, B2B CLV, SaaS LTV calculator, CLV vs CAC, lifetime value formula.