Customer Lifetime Value Calculator
This CLV calculator gives loyalty, CRM, and retention teams a simple way to estimate how much a customer is worth over time before acquisition and servicing costs.
How to use this calculator
Calculate customer lifetime value from average order value, purchase frequency, gross margin, and expected customer lifespan. These calculators are intended for planning and benchmarking. Use your own finance, attribution, and campaign data before making final budget decisions.
Worked examples
Each example runs the same formulas as the calculator above, using figures typical of that kind of business.
Fast fashion ecommerce
An online apparel retailer with high repeat purchase rates and healthy margins targeting long-term customer value.
| Average order value | 120 $ |
|---|---|
| Purchases per year | 8 |
| Gross margin | 55 % |
| Customer lifespan | 4 years |
| Annual revenue per customer | $960 |
|---|---|
| Annual gross profit | $528 |
| Estimated CLV | $2,112 |
Niche subscription box
A specialty subscription service with modest order value but very frequent deliveries and committed customers.
| Average order value | 35 $ |
|---|---|
| Purchases per year | 12 |
| Gross margin | 38 % |
| Customer lifespan | 2 years |
| Annual revenue per customer | $420 |
|---|---|
| Annual gross profit | $160 |
| Estimated CLV | $319 |