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Customer Lifetime Value Calculator

Calculate Customer Lifetime Value (CLV/LTV) for any business model. Supports both simple calculation and SaaS subscription models with churn-based projections.

Customer Lifetime Value Calculator

Calculate how much revenue a customer generates over their entire relationship with your business

For any business: e-commerce, retail, services, etc.

Default 100% (no margin adjustment)

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Customer Lifetime Value

$1,020

$1,020

Total CLV (gross)

$340

Annual Value

$28

Monthly Value

How it is calculated

Avg Order Value x Purchases/Year x Lifespan= $1,020

CLV:CAC Ratio Guide

Compare your CLV against your Customer Acquisition Cost (CAC) to evaluate unit economics

> 3:1 — HealthyStrong unit economics, sustainable growth
1:1 - 3:1 — Needs improvementReduce CAC or increase CLV
< 1:1 — UnsustainableSpending more to acquire than you earn

How to improve CLV

  • Increase average order value with upsells, cross-sells, and bundles
  • Increase purchase frequency with re-engagement emails and loyalty programs
  • Extend customer lifespan by reducing churn with onboarding and retention campaigns
  • Improve gross margin by optimizing costs and moving upmarket
  • • A healthy CLV:CAC ratio is at least 3:1 — aim for 5:1 or higher

About this tool

Customer Lifetime Value tells you how much revenue you can expect from a single customer over your entire relationship. It's essential for setting acquisition budgets, optimizing retention strategies, and forecasting revenue. For subscription businesses, CLV is directly tied to churn — reduce churn by even 1% and watch lifetime value soar. Use our CAC calculator to compare acquisition cost against lifetime value (aim for a 3:1 LTV:CAC ratio). Track your churn rate to understand what drives CLV changes, and measure email conversion rates to optimize your acquisition funnel.

Frequently Asked Questions