CLTV Calculator — Customer Lifetime Value
Calculate Customer Lifetime Value: order value, frequency, margin, lifespan.
Use the CLTV Calculator — Customer Lifetime Value
Enter order value, frequency, margin, and lifespan. Customer Lifetime Value is calculated.
Inputs
Customer value metrics.
Results
CLTV
$800
Annual profit per customer
$160
CLTV = (Avg order × Freq × Margin) × Lifespan. Use for CAC ratio and retention.
How this calculator works
Enter avg order value, purchases per year, gross margin %, and avg customer lifespan. CLTV is calculated.
How to interpret your results
Use CLTV for CAC limits. Aim for CLTV:CAC of 3:1 or higher.
FAQs
What is CLTV?▾
Customer Lifetime Value. Total profit from a customer over their relationship with your business.
Why use CLTV?▾
Set CAC budgets (CLTV:CAC ratio). Prioritize retention. Value segments.
How to improve CLTV?▾
Increase order value, frequency, margin, or lifespan. Retention and upsell matter.
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