Calculate CLV in a few simple steps.
Input the average value of each customer purchase.
Input how many times a customer buys per year.
Enter the average number of years a customer stays.
Enter your profit margin percentage.
Review the customer lifetime value.
CLV helps you determine how much you can afford to spend on customer acquisition (CAC). A healthy business typically has a CLV:CAC ratio of 3:1 or higher.
Increase purchase frequency through loyalty programs, raise average order value through upselling, and extend customer lifespan through excellent service and retention programs.
Calculate the lifetime value of a customer based on average purchase value, purchase frequency, customer lifespan, and profit margin.
The Customer Lifetime Value (CLV) Calculator helps businesses understand how much revenue a single customer generates over their entire relationship with the company.
Calculate CLV in a few simple steps.