CLV Calculator: Calculate Customer Lifetime Value
Calculate Customer Lifetime Value (CLV) instantly. Enter purchase value, frequency, and customer lifespan to understand your customer worth.
Purchases per year
Years as customer
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What is CLV?
Customer Lifetime Value (CLV or LTV) is the total revenue you can expect from a single customer throughout their relationship with your business. It helps determine how much to invest in acquiring customers.
CLV Formula
CLV = Average Purchase Value × Purchase Frequency × Customer LifespanCLV Benchmarks by Business Model
Customer lifetime value varies dramatically by model:
- E-commerce: $100-500 (1-3 year lifespan)
- SaaS: $1,000-50,000+ (depending on pricing and retention)
- Subscriptions: 3-5 years average lifespan with 5-15% monthly churn
- Luxury retail: $2,000-20,000+ (loyal, high-value customers)
Frequently Asked Questions
Why is CLV important?
CLV tells you how much you can spend to acquire a customer. If CLV is $300, spending $100 on acquisition is profitable.
What is a good CLV:CAC ratio?
Aim for 3:1 or higher. Below 1:1 means you're losing money on acquisition. 4:1+ indicates room to invest more in growth.
How do I increase CLV?
Increase purchase frequency (email, retargeting), increase average order (upsells, cross-sells), or improve retention (loyalty programs, better product).
Should I calculate CLV by segment?
Yes! Different customer segments have different CLVs. Focus acquisition on high-CLV segments for better returns.
How does churn affect CLV?
Churn directly reduces customer lifespan. Reducing churn from 5% to 3% monthly can double CLV.
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