Free Customer Lifetime Value Calculator
Our free tool will help you calculate Customer Lifetime Value in 30 seconds. Customer Lifecycle Value is a prediction of the net profit attributed to the entire future relationship with a customer.
What is Customer Lifetime Value (CLV or LTV)?
Customer Lifetime Value (referred to as CLV or LTV) is the amount of reveneue a company can expect to earn from a single customer through the customer lifetime. It gives you an indication of total expected return from a customer. The metric helps you identify the Return on Investment (ROI) on a new customer acquired and validate your Cost of Customer Acquisition. As a rule of thumb of your Customer Lifetime Value (CLV or LTV) should be 3 times your Customer Acquisition Cost (CAC).
How to calculate Customer Lifetime Value (CLV or LTV)?
To calculate Customer Lifetime Value, multiply Average Order Value with Purchasing Frequency and Average Customer Lifespan. There are many ways of calculating Customer Lifetime Value but they are much more complicated and require a huge amount of data.
Customer Lifetime Value (CLV or LTV) Formula
Use the following formula to calculate CLV: