Customer Lifetime Value Calculator
Calculate total customer value over their lifetime.
Customer Lifetime Value Calculator estimates the economic value of a customer relationship over time. CLV or LTV is built from average purchase value, purchase frequency, customer lifespan, retention, churn, and sometimes gross margin. Average purchase value measures revenue per transaction, purchase frequency measures how often the customer buys, and customer lifespan estimates how long the relationship lasts. In subscription businesses, churn is the rate at which customers leave; lower churn increases expected lifetime and therefore lifetime value. CLV is useful for deciding how much can be spent on acquisition, onboarding, support, and retention. The result is a model, not a guarantee, because customer cohorts, margins, discounting, refunds, and expansion revenue can change the true value.