Free Customer Lifetime Value (CLV) Calculator
Customer Lifetime Value tells you how much a single customer is worth to your business across their entire relationship with you. It's the ceiling on what you can afford to spend to acquire one.
Results
Target CAC (3:1 ratio): up to $288.00 per customer.
About the Customer Lifetime Value Calculator
The CLV formula
Gross CLV = Average Purchase Value × Purchase Frequency per year × Customer Lifespan in years. Net CLV = Gross CLV × Gross Margin %. Net CLV is the number you actually care about because it excludes cost of delivery.
CLV and acquisition cost
The healthy ratio is CLV:CAC of at least 3:1 — for every $1 you spend to acquire a customer, you should earn $3 in net lifetime value. Below 3:1 you'll struggle to grow profitably; above 5:1 you're probably under-investing in marketing.
Improving CLV
Three levers, in order of typical impact: extend customer lifespan (retention), increase purchase frequency (engagement), then raise average order value (upsells). Retention beats acquisition on ROI almost every time.
Frequently asked questions
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