Business

Customer Lifetime Value Calculator

Estimate simple customer lifetime value (CLV) from average order value, purchase frequency, gross margin and customer lifespan.

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Customer Lifetime Value Calculator

Enable JavaScript to use the interactive calculator; the example and formula are described below.

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Marketing Metrics & Customer Economics

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How to use this customer lifetime value calculator

Enter the values requested above and select Calculate. Change any input to compare another scenario. The calculation runs locally in your browser and does not require an account.

Formula and method

Simple CLV = average order value × purchases per year × customer lifespan × gross margin percentage.

Example

A $100 average order, 4 purchases per year, 3-year lifespan and 40% gross margin gives estimated CLV of $480.

What this calculator is useful for

Estimate simple customer lifetime value (CLV) from average order value, purchase frequency, gross margin and customer lifespan. The result is intended for quick estimates, checking arithmetic and comparing scenarios. When a result affects a contract, tax filing, medical decision, building-code requirement or other high-stakes situation, verify the result with the appropriate professional or authoritative source.

Customer Lifetime Value Calculator: a practical example

A $100 order placed four times each year over three years is $1,200 of revenue. At 40% gross margin, estimated gross-profit CLV is $480.

What the result means

This simplified CLV is gross profit from repeat purchases, before customer acquisition cost.

Limits to consider

Customer churn, retention distributions, discounting, refunds, and changing margins are not modeled.

Related tools: Customer Acquisition Cost Calculator · Hourly to Salary Calculator

Frequently asked questions

What does the Customer Lifetime Value Calculator calculate?

Estimate simple customer lifetime value (CLV) from average order value, purchase frequency, gross margin and customer lifespan.

How does the Customer Lifetime Value Calculator work?

Simple CLV = average order value × purchases per year × customer lifespan × gross margin percentage.

Is the Customer Lifetime Value Calculator free to use?

Yes. ERICH Calculators is free to use and does not require an account.

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Method, assumptions & corrections

See how formulas, sources and limitations are handled across ERICH Calculators.