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Customer Lifetime Value Calculator
Estimate simple customer lifetime value from average order value, purchase frequency and customer lifespan.
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Simple customer lifetime value formula
Estimated revenue CLV = average order value × purchases per year × customer lifespan in years. For an $80 average order, four purchases each year and a three-year lifespan, estimated revenue CLV is $960.
When gross margin is entered, estimated gross-profit CLV = revenue CLV × gross-margin percentage. At 60% margin in this example, the estimate is $576. Use a consistent currency and time basis for all inputs.
A planning estimate, not a churn model
This simple calculation assumes the entered purchase frequency and lifespan remain representative. It does not model cohort retention, churn curves, discounting, acquisition cost, expansion or changing order behavior.
Treat the result as a planning estimate rather than a prediction. A cohort or subscription CLV model needs time-based customer and revenue data beyond these inputs.
Related calculations: Lead Conversion Rate Calculator · Profit Margin & Markup Calculator
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The tool is intentionally simple. Open an answer only when you need it.
How does this tool work?
- Enter average order value.
- Enter purchases per year and average customer lifespan.
- Optionally add gross margin to see an estimated gross-profit CLV as well.
Is this predictive CLV?
No. This is a simple planning estimate based on the values you enter, not a predictive model.
Why include gross margin?
Revenue CLV shows customer revenue. Applying gross margin gives a rougher view of gross profit generated across the customer lifespan.
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