Customer lifetime value, often written LTV or CLV, estimates the total profit a single customer generates across the whole time they stay with you. Knowing it tells you how much you can afford to spend to acquire and keep customers. This calculator multiplies your average order value by how often a customer buys per year and by the average number of years they stay, then applies your gross margin so the result reflects profit rather than raw revenue. The formula is average order value times purchases per year times customer lifespan times margin. Subscription and ecommerce businesses lean on LTV to set marketing budgets and to prove that growth is sustainable. Enter your four inputs and the estimate updates instantly, ready to compare against your acquisition cost. All calculations run locally in your browser, so your metrics stay private.
It multiplies average order value by purchase frequency and customer lifespan, then applies your margin to estimate lifetime profit.
Revenue is not profit. Applying your gross margin turns lifetime revenue into the actual profit a customer contributes.
It is how often a typical customer buys in a period, and multiplying by lifespan gives their total number of purchases.
Customer lifetime value, often written LTV or CLV, estimates the total profit a single customer generates across the whole time they stay with you. Knowing it tells you how much you can afford to spend to acquire and keep customers.
Yes. Customer Lifetime Value Calculator is completely free, with no sign-up and no usage limits.
Yes. Customer Lifetime Value Calculator runs in any modern web browser. There is nothing to download or install.
Yes. Customer Lifetime Value Calculator runs entirely on your device in your browser, so nothing you enter is uploaded to a server.