Customer Lifetime Value (CLV) Calculator

Estimate the total revenue you can reasonably expect from a single customer account throughout their relationship with your business. CLV is a critical metric for making decisions about sales, marketing, and customer support.

Improve Retention

Understand the value of keeping customers happy and coming back.

Justify Acquisition Spend

Make informed decisions on how much to spend to acquire new customers.

Target High-Value Segments

Identify and focus your marketing efforts on your most profitable customers.

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Results

Enter values and click Calculate to see results

Understanding Customer Lifetime Value

Customer Lifetime Value (CLV) is a forecast of the net profit attributed to the entire future relationship with a customer. It's a powerful metric that helps you shift focus from short-term profits to long-term business health.

Simple Formula: CLV = Average Purchase Value × Purchase Frequency × Customer Lifespan

This calculator uses a simple, common model. More complex models can also incorporate profit margin and customer retention rates for even greater accuracy, but this formula provides a strong directional estimate.

Frequently Asked Questions

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