Financial

Free Customer Lifetime Value Calculator

CLV from average order value, purchase frequency and margin.

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Inputs

$
%

Result

Customer lifetime value (profit)

$384.00

Lifetime revenue$960.00
Annual value per customer$320.00

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Estimates only. Verify with a professional for consequential decisions.

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Short answer

CLV from average order value, purchase frequency and margin.

What is the Customer Lifetime Value Calculator?

CLV from average order value, purchase frequency and margin.

How does the Customer Lifetime Value Calculator work?

Enter the inputs above and read the result.

Formula

CLV = AOV × Purchase frequency × Lifespan × Margin

Variables

  • AOVAverage order value

Explanation

CLV estimates the total profit a business can expect from one customer relationship.

Examples

Applications

    Advantages

      Limitations

        Common mistakes

          Tips

            Related concepts

            The Customer Lifetime Value Calculator sits inside the Finance Calculators hub, in the business & accounting cluster. Unit economics, margins and company metrics. Understanding the terms below makes the output easier to interpret and easier to compare against neighbouring measures.

            contribution marginfixed costvariable costrunwayLTV:CACoperating leverage

            Practical use cases and industry applications

            Understanding Customer Lifetime Value

            CLV from average order value, purchase frequency and margin. Within finance calculators, customer lifetime value belongs to the business & accounting cluster, where it shares terminology and assumptions with closely related tools.

            Learning how customer lifetime value is calculated

            CLV estimates the total profit a business can expect from one customer relationship. Working through the variables one at a time — AOV — makes the result reproducible by hand and easier to sanity-check.

            Using customer lifetime value to make a decision

            Because outputs depend on the assumptions you enter, run more than one scenario before committing to a figure.

            How customer lifetime value compares with related measures

            contribution margin, fixed cost, variable cost, runway all describe adjacent aspects of business & accounting. Comparing this calculator's output against those measures — using the related tools listed on this page — prevents a single metric from being read in isolation.

            Frequently asked questions

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